Dear experts, a canteen rent paid Rs.30000 and GST paid at 18%, on what conditions ITC may be claimed on sales of tea, coffee snacks sold. Will any one please clarify?
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Quick Summary
This discussion concerns the eligibility of claiming Input Tax Credit (ITC) on GST paid for canteen sales, specifically tea, coffee, and snacks. The initial query questions the conditions under which ITC can be claimed, given a canteen rent payment and 18% GST. A key point raised is that ITC is generally not available for food and beverage supplies, especially if the outward supply tax rate is 5%.