Dear Sir,
Please guide me in the following case.
If the room tariff in a resort is below ₹7500/- then the GST rate for room is 12% and for food served in restaurant is 5% without ITC. For banquet hall the GST rate is 18%.If banquet food sales is done then
also GST rate is 18%, then
how can the resort can
claim the ITC, if they are
under lower tax bracket.
Regards,
Sidney
Banquet income & rate on food served in restaurant
Replies (1)
You cannot claim ITC while charging the concessional 5% rate for restaurant/outdoor catering. However, when you provide banquet services and charge 18% GST as part of an event package, you are eligible to claim ITC on the goods and services used for that specific business activity.
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