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X, a registered restaurant, supplies food + beverages of Rs 1.2 cr in a FY. Can X opt for composition under Sec 10(1)(b)?
ANo — Rs 1 cr is the threshold for restaurants
BYes, restaurants can opt with Rs 1.5 cr threshold
CNo — restaurants cannot opt for composition
DYes only if X is in a special-category State
Answer & Solution
Correct answer: B. Yes, restaurants can opt with Rs 1.5 cr threshold
1. Sec 10(1)(b) allows restaurants (not serving alcoholic liquor for human consumption) to opt for composition.
2. The aggregate turnover threshold is Rs 1.5 cr (Rs 75 lakh in special-category States).
3. X's turnover is Rs 1.2 cr — within the threshold, so X is eligible.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 10(1)(b)_
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