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Naman P. Charan (Shop)     18 August 2021

How much to pay under composition scheme

Sir, one of my client is a manufacturer of some food product and he is also supplying the same in his restaurant so under composition scheme he has to pay 5 % as a service provider or as a manufacturer 1%.



 2 Replies

Kevin Moses Paul   19 August 2021

As per you're query, let me tell you if in case you're supplying a food products in packets and all to the customers then the situation will be considered as manufacturing. In this case the GST applicable will be 2%

But in cases where you're supplying a mere snack (bhujia) to the customers in a restaurant or something then the GST applicable will be 5%

You can read and learn more about GST from the link given below:-
https://www.bankbazaar.com/tax/gst.html

Hope It Helps!

Regards
Kevin M. Paul

Harish varun   27 January 2025

Under the gst composition scheme, your client will need to pay 5% on the turnover attributable to his restaurant services since he is acting as a service provider in that case. For the food products he manufactures and supplies as a manufacturer, he will need to pay 1% on the turnover attributable to that manufacturing activity.

So, the tax liability will depend on the bifurcation of turnover between the manufacturing and service (restaurant) activities. It’s essential to keep proper records and separate the turnover for each category to ensure compliance with GST rules.


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