Can restaurants serving liquor claim 100% itc ?
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Can restaurants serving liquor claim 100% itc ?
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Quick Summary
No...
Regular scheme registration
input tax credit is possible only when there is a valid tax bill and there are other aspects.
input tax credit is possible only when there is a valid tax bill and there are other aspects.
Supply of liquor is Non taxable supply , & In term Section 17(2) R/w rule 42 ,the credit of ITC restricted to ITC attributable to Taxable Supply. Hence need to reverse ITC in proportion to supply of liquor.
Eg : ITC on purchase of Glass need to be reversed in which liquor has been served.
(Kindly refer Rule 42 & 43 )
Eg : ITC on purchase of Glass need to be reversed in which liquor has been served.
(Kindly refer Rule 42 & 43 )
Liquor and fuel both are not subject to gst. It's a taxable supply.
yes, not under the purview of gst hence not taxable in GST.
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