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Rajat, a registered restaurant in Delhi (turnover Rs 80 lakh in PY), opts for composition under Sec 10(1)(b). What rate of CGST + SGST does he pay on his turnover?
A0.5% + 0.5%
B1% + 1%
C6% + 6%
D2.5% + 2.5%
Answer & Solution
Correct answer: D. 2.5% + 2.5%
1. Sec 10(1)(b) applies to restaurants other than those serving alcoholic liquor for human consumption.
2. Rate notified is 5% aggregate = 2.5% CGST + 2.5% SGST.
3. Rajat's turnover (Rs 80 L) is below the Rs 1.5 cr threshold so he is eligible.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 10(1)(b)_
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