A Restaurant is selling Food items and MRP products
It pays GST at 5 % on food items
It pays GST on MRP products at 18%, can it claim ITC on these products alone?
Or does it have to pay 5 % on MRP products also!?
If so would it not be double taxation of 5% on 18%?
As per CGST(rate) Notification no. 46/2017 , Rate for Restaurant is 5% without ITC
Hence Restaurant cannot claim ITC
Note : Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC
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