Which scheme is best for caterers under GST - Regular or Composition if his turnover is below 1.5 CR.

Reply—‘Outdoor Catering’ means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.

Rate of GST on Outdoor Catering services other than in premises having daily tariff of unit of accommodation of Rs 7501 reduced from 18% with ITC to 5% without ITC via notification no. 20/2019- Central Tax (Rate) dated 30th September, 2019.

Taxpayer should charge 5% without ITC and get registration as regular dealer instead of composition. Under composition scheme rate of tax will be 6% and turnover limit is 50 lakh so it would not beneficial for taxpayer.