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GST input claiming for Food purchase

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SRKK

Article

71 Points Posted on 18 May 2023

Hi sir or madam
i have a doubt that my client is running a park in the hill area. they providing room and food service. The gst is collected on each item is seperate. ie park visiting is 18% gst, room service is 12% gst and food service is 5% gst. my doubt is can we claim the input on food items purchased (example ice cream, etc) while we paying 5% on food service?

Please help

Replies (5)

Quick Summary

This discussion clarifies whether businesses can claim GST input tax credit on food items purchased when they charge 5% GST on food services. Initially, it was suggested that input tax credit is claimable if food items are used for taxable supplies. However, a key point emerged regarding restaurants within hotels charging less than Rs 7500 room tariff, where input tax credit is not allowed. This led to further confusion, with one participant confirming that for standalone restaurants at 5% GST, input tax credit cannot be claimed.

B Durga Prasad

Student

175 Points Posted on 18 May 2023

Yes, you can claim input tax credit on food items purchased even if you are paying 5% GST on food service. As long as the food items are used in the business for providing taxable supplies, you are eligible to claim the credit. Ensure you have proper documentation and comply with GST regulations.
To learn more about Input Tax Credit under GST click here

For more detailed information, visit Swipe Blogs.

SRKK

Article

71 Points Posted on 18 May 2023

Sir, but i heard I heard " food service provided by a restaurant operating within a hotel with a room tarrif of Rs 7500 or less is 5% with no input tax". That's why im confused.