Can a stand alone restaurant opt for tax rate of 18% with ITC. Please cite the relevant rule

Can a stand alone restaurant opt for tax rate of 18% with ITC. Please cite the relevant act rule or notification.

Replies (1)

A standalone restaurant cannot opt for an 18% tax rate with Input Tax Credit (ITC). According to Notification No. 46/2017-Central Tax (Rate) dated November 14, 2017, standalone restaurants with a declared tariff of less than ₹7,500 per room are taxed at 2.5% CGST, subject to the condition that no ITC is availed on goods and services used for providing this service.¹ *GST Rates for Restaurants:* - *5% GST Rate*: Restaurants with no ITC benefit, applicable to standalone restaurants and those in hotels with a declared tariff below ₹7,500 per room. - *12% GST Rate Proposal*: There's a proposal to tax restaurants at 12% without ITC, but this hasn't been implemented yet. - *18% GST Rate*: Currently applicable to air-conditioned restaurants, but with ITC benefits.² *Key Points:* - *ITC Availability*: If a restaurant opts for the 5% GST rate, they cannot claim ITC on goods and services used. - *Composition Scheme*: Restaurants under the composition scheme are not eligible for ITC.³ To determine the best tax option for your restaurant, consider consulting a tax professional who can guide you through the GST laws and help you make an informed decision.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details