I run a restaurant in Thiruvananthapuram, what state GST rate applies to me?

Detailed Legal Analysis

As a restaurant owner in Thiruvananthapuram, you are subject to a state Goods and Services Tax (GST) rate of 5% on the supply of food and beverages served in your establishment, as per the GST framework in India.

The applicable GST rates for restaurants are outlined in the Goods and Services Tax (GST) regime which was implemented by the Goods and Services Tax Act, 2017. The specific provisions concerning restaurants can be found in the GST Rate Notification No. 1/2017-Central Tax (Rate) and subsequent amendments.

• Rate of Tax:
  • 5% GST is applicable on the supply of food and beverages by restaurants without the option of Input Tax Credit (ITC).
  • In case a restaurant opts for ITC, a higher rate of 18% GST is applicable, but this is generally for those who serve alcohol and provide more luxurious dining experiences.
• Composition Scheme:
  • If your turnover is below ₹1.5 crores, you may opt for the Composition Scheme under Section 10 of the CGST Act, 2017, which allows you to pay a lower rate of tax (1% for restaurants) without the complexity of GST compliance.
  • However, under this scheme, you cannot claim ITC on purchases.
• Registration:
  • You must register for GST if your aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) as per Section 22 of the CGST Act, 2017.
  • Once registered, you must file GST returns regularly as per the prescribed timelines under the GST law.
• Filing Returns:
  • Registered restaurants must file GSTR-1 (details of outward supplies) and GSTR-3B (monthly summary of inward and outward supplies) for compliance.
  • Filing must be done within the due dates specified by the GST Council to avoid penalties.

It is also advisable to keep abreast of any changes in GST rates or compliance requirements by regularly checking updates from the GST Council or consulting a tax professional for specific advice tailored to your business.