This discussion explores whether restaurants can claim Input Tax Credit (ITC) for Reverse Charge Mechanism (RCM) paid on rented commercial property. Generally, standalone restaurants in India cannot claim this ITC. However, restaurants operating within higher-tariff hotels or offering specific catering services may be eligible to claim GST paid under RCM.
21 June 2025
For most standalone restaurants in India, ITC cannot be claimed. However, restaurants that are part of higher-tariff hotels or provide specific catering services generally can claim ITC, which include GST paid under RCM.