Within a week of being set up, the group of ministers (GoM) on making the GST composition scheme more attractive held its first meeting on 15 October 2017. The 5-member GoM, under Assam Finance Minister Himanta Biswa Sarma, has also been tasked to revisit Goods and Services Tax (GST) rates for restaurants.
Businesses with turnover of up to Rs 1 crore can opt for the composition scheme and they can pay taxes in the range of 1-5 per cent and file returns quarterly. The GST Council, chaired by Finance Minister Arun Jaitley and consisting of his state counterparts, had on October 7 constituted the GoM, which will submit its report by the end of November.
The GoM has also been tasked with revisiting the tax structure of different categories of restaurants with a view to rationalising or reducing the rates. Currently, GST is levied at 12 per cent on non-AC restaurants while it is 18 per cent for air-conditioned ones. To make the composition scheme more attractive, the GoM would look into whether turnover of exempted goods can be excluded from the total turnover threshold for levying tax under the composition scheme.