Answer

1. F

   Facts

   Composition for restaurant services is meant for restaurants serving food and non-alcoholic items. Supply of alcohol for human consumption is outside GST and is taxed under State law, but composition limits and conditions must still be checked carefully.

2. P

   Provisions and law

   • Rule 7, CGST Rules 2017Composition rates: 1 percent for manufacturers and traders, 5 percent for restaurant service
   • Sec 10(2), CGST Act 2017Lists who cannot opt, such as inter-State outward suppliers and notified manufacturers; all registrations on the same PAN must opt together
   • Article 366(12A), Constitution of IndiaAlcoholic liquor for human consumption is outside GST
3. A

   Analysis

   Alcohol sales are not GST supplies, but they count in aggregate turnover as non-taxable supplies and can push you over Rs 1.5 crore. Example: a restaurant with Rs 1 crore food sales adds Rs 70 lakh liquor sales; aggregate turnover becomes Rs 1.7 crore and composition is lost. Take professional advice before adding a bar.

4. C

   Conclusion

   1. 1Estimate food and liquor sales separately
   2. 2Check aggregate turnover against the limit
   3. 3Check State excise and VAT rules for liquor
   4. 4Exit composition through CMP-04 if the limit is crossed

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.