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prashant Kumar Singh

prashant Kumar Singh

(Querist)

11 October 2017 how can a restaurant dealer set off itc on cold drinks on which he paid tax @ 28℅ + 12℅ cess but he has received gst @ 18℅ (now 12℅) on his sale

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

11 October 2017 You have to pay excess liability in cash.

prashant Kumar Singh

prashant Kumar Singh

(Querist)

11 October 2017 but mam in this case there is excess tax credit my question is that how a restaurant dealer can set off cess paid on cold drink while he can recover only 12℅ or 18℅ from his customer

anshul aggarwal

anshul aggarwal (Expert)

11 October 2017 You can't that will be carry forwarded. In case your output requires cess at any time then only it can be squared off.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

11 October 2017 ITC of Cess cant be used to set off GST Tax amt. You have to use same in the month when you have liabilty of cess.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 Under current rules a standalone restaurant pays 5% GST without ITC, so GST or cess paid on cold drinks cannot be claimed at all; it becomes a cost built into the menu price, and only restaurants in hotels with room tariff above Rs 7,500 pay 18% with ITC.

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