Group of Ministers set up to make GST composition scheme more attractive

 

A Group of Ministers (GoM) has been set up under Assam Finance Minister Himanta Biswa Sarma to make the composition scheme more attractive and revisit GST rates on restaurants. The GST Council had constituted the GoM, which will submit its report in two weeks.

With only 15.50 lakh businesses out of the total 98 lakh registered under the GST regime opting for the composition scheme, the GST Council has decided to set up the GoM to examine steps to make it more attractive. Businesses with turnover of up to Rs. 1 crore can opt for the composition scheme and pay taxes in the range of 1-5% and file returns quarterly.

The GoM has also been tasked with revisiting the tax structure of different categories of restaurants in order to rationalise or reduce the rates.

Currently, GST is levied at 12% on non-AC restaurants and 18% on air-conditioned ones.