The Group of Ministers (GoM) is working to make GST composition scheme more attractive by proposing to lower tax rates for manufactures and  restaurants under the plan to 1%.

At present, manufacturers and restaurants with turnover up to Rs.1 crore pay GST under composition scheme at 2% and 5% respectively. The same for traders is 1%.

The GoM has also suggested for a tax rate distinction between AC and non-AC restaurants, those which are not covered under composition scheme, and tax them at 12 percent with input credit.

At present, GST is levied at 12% on non-AC restaurants, while it is 18% for air-conditioned ones.

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