Permit room holders cannot opt for Composite Scheme: Jogani

Source: The Hitavada      Date: 13 Jul 2017 11:54:50


Business Bureau

Nagpur Zilla Permit Room Association had organised a talk on ‘Goods & Service Tax (GST) on restaurants and permit rooms.’
Rajiv Jaiswal, President of the Association welcomed the chief guest CA Sandeep Jotwani, Chairman of ICAI, Nagpur branch. Madan Jaiswal, Secretary of Association welcomed the speaker CA Kailash Jogani and Prashant Ahirkar welcomed the Secretary of NCCL Vijay Jaiswal.
At the outset, Rajiv Jaiswal welcomed the guest speaker and all the members and brief about the activities of the Association.

CA Sandeep Jotwani said, “GST is one of the game-changer and a very simple tax based on technology.” He urged businessmen not to get panic from GST and be adoptive. He also assured the Association that ICAI, Nagpur branch would extend all possible help to members of the Association.

CA Kailash Jogani in his keynote speech explained in detail various aspects of GST. He explained in detail the applicability of GST on restaurants and liquor permit rooms. Jogani said, under the GST, the restaurants are broadly divided into two areas non AC and AC restaurants. Dinning out in AC restaurants would attract tax of 18 per cent and non AC would attract 12 per cent GST on food bill. Five star hotels would be most expensive as it would attract a GST slab of 28 per cent. These restaurants can take credit of input goods and services consumed while providing restaurant services.

“There is one more category i.e. the restaurant having license to serve liquor, whether AC or non AC will levy a tax of 18 per cent,” he said. He also explained the Composite Scheme for small and medium restaurants. Small restaurants can opt for Composite Scheme that offer a GST rate of 5 per cent without availing input tax credit. The limit of turnover for restaurant opting Composite Scheme is Rs 75 lakh.

He explained in detail about billing and return filing in composite scheme.
According to Jogani, “The permit room holders cannot opt for the Composite Scheme irrespective of their size. One of the restricting conditions is that the taxpayer opting for the scheme must not be engaged in making any supply of goods which are ‘non-leviable’ to tax under GST. As the liquor is entirely out of the GST ambit, the permit room holders cannot opt for Composite Scheme even if their turnover is below Rs 75 lakh.”

He suggested the Association for seeking clarification on the important issue.
Prominently present were Arun Jaiswal, Ravindrasingh Bhamra, Ajay Kurgwani, Nalin Bawankar, Anand Dandekar, Sachin Jaiswal and large numbers of traders.