Itc on restaurant

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Sabita Sahoo (Querist)
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14 December 2017 Now gst rate on foodbill in restaurant is 5% without itc.If mineral water is served in bottle then gst on mineral bottle will be charged at 5% or 18%.one expert says as mrp is printed on mineral water bottle no gst will be charged further and gst on foodbill excluding mineral water is to be charged in the bill.If this is true then can the restaurateur avail ITC on mineral water on its purchase?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2017 18% GST applicable on mineral water over and above MRP rate ITC can be claimed on purchase.

Sabita Sahoo

Sabita Sahoo (Querist)
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15 December 2017 How can gst be collected over and above MRP(maximum retail price).You said ITC can be availed on purchase but restaurant is not allowed to avail ITC. Please clarify your view.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2017 ITC allowed for any sale of 18% GST.
Sale above MRP allowed see Delhi High court judgement recent.

Sabita Sahoo

Sabita Sahoo (Querist)
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15 December 2017 Please specify the high court judgement case no./ date for further knowledge.Again in the notification of centraltax rate DTD.15.11.17,there is entry on gst @5% on supply of food or any other article for human consumption or drink.Thus it is construed that whaterver is served in restaurant attracts gst @5% .nowhere is mentioned about separate tax rate on mineral water/drink.So should we go by notification or delhi high court judgement?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2017 Go by notification and charge 5% GST on mineral water.
See the link for Supreme court judgement on sale above MRP.
https://www.google.co.in/amp/s/m.economictimes.com/industry/cons-products/food/hotels-can-charge-more-for-bottled-water-supreme-court/amp_articleshow/62044477.cms

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Sabita Sahoo

Sabita Sahoo (Querist)
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15 December 2017 Thank u sir for your guidance.

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