GST ITC CREDIT for cafe

This discussion clarifies how cafes can claim Goods and Services Tax (GST) Input Tax Credit (ITC). Generally, cafes charging 18% GST are eligible for ITC, while those charging 5% are not. ITC can be claimed on items directly related to the business, such as coffee beans, provided they are reflected in GSTR 2B and other conditions are met. Businesses under the composition scheme cannot claim ITC.