{"id":43902,"date":"2024-04-15T21:36:05","date_gmt":"2024-04-15T21:36:05","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43902"},"modified":"2024-04-15T21:36:05","modified_gmt":"2024-04-15T21:36:05","slug":"what-is-the-rate-applicable-under-cgst-to-a-registered-person-being-a-hotelier-opting-to-pay-taxes-under-composition-scheme","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-rate-applicable-under-cgst-to-a-registered-person-being-a-hotelier-opting-to-pay-taxes-under-composition-scheme\/","title":{"rendered":"What is the rate applicable under CGST to a registered person being a hotelier opting to pay taxes under composition scheme?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a977c543ee5b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    1%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    0.50%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    2.50%                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. 1%<\/strong><\/p>\n<p>The composition scheme is a simplified tax regime for small businesses. Under the composition scheme, a registered person can opt to pay a fixed percentage of their turnover as tax, instead of paying tax on the actual value of their sales. The rate of tax applicable under the composition scheme for hoteliers is 1%.<\/p>\n<p>The composition scheme is not available to all businesses. To be eligible for the composition scheme, a business must meet certain conditions, such <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> as having a turnover of less than Rs. 1 crore. The composition scheme is also not available to businesses that are engaged in certain activities, such as manufacturing or trading of goods.<\/p>\n<p>Businesses that opt for the composition scheme are not allowed to claim certain input tax credits. This means that they cannot claim credit for the GST that they pay on their purchases of goods and services. This can be a disadvantage for businesses that have high input costs.<\/p>\n<p>Overall, the composition scheme is a simplified tax regime that can be beneficial for small businesses. However, businesses should carefully consider whether the composition scheme is right for them before opting in.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: 1%. This is the correct answer. The rate of tax applicable under the composition scheme for hoteliers is 1%.<\/li>\n<li>Option B: 0.5%. This is not the correct answer. The rate of tax applicable under the composition scheme for hoteliers is 1%, not 0.5%.<\/li>\n<li>Option C: 2.5%. This is not the correct answer. The rate of tax applicable under the composition scheme for hoteliers is 1%, not 2.5%.<\/li>\n<li>Option D: None of the above. This is not the correct answer. The rate of tax applicable under the composition scheme for hoteliers is 1%.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[969],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the rate applicable under CGST to a registered person being a hotelier opting to pay taxes under composition scheme?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-rate-applicable-under-cgst-to-a-registered-person-being-a-hotelier-opting-to-pay-taxes-under-composition-scheme\/\" 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