I have some queries on GST on Pizza Franchisee Business .
1. Is input Available on Machinery Installed for Making Pizza under Franchisee. 2. Business is also run through online portal like Zomato, on this tax is to be paid. 3. Is input is available on food/Bevrage which Purchase from Local market to serve the customer other than "Pizza".
20 August 2021
1 In case of 5% GST charged on sale of Pizza no ITC can be claimed. 2 yes, 18% tax in payable on their service charges. 3 yes ITC available if GST charged on such sale is more than 5%
22 August 2021
It depends whether you are supplying service or goods. If you are supplying service in nature of restaurant then ITC is not available on anything. If you are in the business of supplying of goods only then ITC is available. If you are engaged in both then proportionate ITC is available. As far as Zomato is concerned they will charge you commission plus GST which you will have to pay. ITC will depend on the explanation given by me above.
24 August 2021
I agree with CA R SEETHARAMAN ji for 1st 2 points. For the 3rd point , ITC will be available in the same line of business even if tax is charged at the rate of 5%.
27 August 2021
Sir, Pizza Co, supply whole Material of Pizza , Franchisee holder only make the product and Rate was Fixed by Pizza Co. suppose 110/ Pizza, Is tax is Payable on Tax. Value i.e 104.76 (@5%) without Claiming ITC on Supply of Material by Pizza co .
CAclubindia
