GST on Restaurant business

This discussion clarifies the Goods and Services Tax (GST) implications for restaurants. Generally, standalone restaurants must charge 5% GST on food and cannot claim Input Tax Credit (ITC). The 18% GST rate typically applies to services, not food sold by restaurants. While a client paying rent at 18% GST wishes to claim it as ITC, the general rule for restaurants charging 5% GST is that ITC is not available.