Inputtaxcredit

This query is : Resolved 
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This discussion clarifies whether a GST-registered eatery charging 5% GST on food items can claim Input Tax Credit (ITC) on purchases like rice, sugar, and oil. The consensus is that restaurants operating under the 5% GST regime are not eligible for ITC on their purchases. This rule applies regardless of whether the restaurant serves alcohol or has air conditioning.

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(Querist)
24 June 2022 we are running a small eatery, registered under gst. My query is if we charges 5%gst on food items
shall we get input tax credit on purchase of food items like rice,,sugar, oil etc. Please give your valuable suggestions, Thanks in advance.

K.B.Nagesha rao
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Gokul Sharma

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Gokul Sharma (Expert)
24 June 2022 The GST rate levied on all restaurants (including AC and non-AC, both alcoholic and non-alcoholic) is 5% without an input tax credit.
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CA Altamush Zafar

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CA Altamush Zafar (Expert)
24 June 2022 ITC is not available for restaurants
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