GST
CMP-08 for restaurants under composition
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Restaurants not serving alcohol pay 5 percent (2.5 percent CGST and 2.5 percent SGST) on turnover under composition.
Provisions and law
- Rule 7, CGST Rules 2017Composition rates: 1 percent for manufacturers and traders, 5 percent for restaurants (each split equally between CGST and SGST).
- Sec 10(1), CGST Act 2017A registered person with aggregate turnover up to the notified limit (₹1.5 crore, lower in special category States) may opt to pay tax at a fixed rate on turnover.
Analysis
For quarterly sales of ₹15 lakh, tax is ₹75,000. You cannot charge GST on the bill, so this comes out of your margin. Also check that your outlet does not serve alcohol, since then composition is not allowed.
Conclusion
- Total restaurant sales for the quarter.
- Apply 5 percent.
- File CMP-08 and pay by the 18th.
- Keep daily sales records.
A Savvy can do this for you
Quarterly CMP-08 statement and payment
₹499
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.