PANAJI
Under this scheme, only 5% of a restaurant’s turnover will payable as tax. Rs 75 lakhs annual sales amounts to Rs 6.25 lakhs monthly sales, which translates to around Rs 20,833 per day of sales, if the restaurant is open on 30 days.
There are a number of restaurants in the state with less than Rs 20,833 per day sales and now they can choose to avail of this composition scheme.
Sandip Bhandare, chartered accountant and president of Goa Chamber of Commerce and Industry (GCCI), said, “More restaurants will now be able to avail benefits under composition scheme, as the GST council has increased the annual turnover limit from Rs 50 lakhs to Rs 75 lakhs. It must be kept in mind that there will be no input tax credit for restaurants availing benefits of composition scheme.”
Only 5% of turnover will be payable as tax under Composition Scheme
Rs 75 lakh annual sales amounts to Rs 6.25 lakh monthly sales
The above translates to around Rs 20,833 per day of sales, if restaurant is open on 30 days
There are a number of restaurants in the state with less than Rs 20,833 per day sales. And now, they can choose to avail of this composition scheme
THEY MAY NOT
BENEFIT
The composition scheme is unlikely to benefit a business, if its input heavy
For instance, take the case of branded pizza shops like Domino’s and Pizza Hut
These are mostly run by franchisee, who may or may not go for composition scheme
