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Input on Food items

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SRKK

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71 Points Posted on 18 May 2023

Hi sir,
one of my client is running a park with room service and food. We are taking 5% gst on food, 12% gst on room and 18% gst on park visitors. We paying gst like this. So my doubt is can I take input on the food items purchased for supply? 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". is this 5% is only for food or for food and room service?

pls help

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Quick Summary

This discussion clarifies GST implications for businesses offering food, room service, and park facilities. It addresses whether input tax credit can be claimed on food items purchased for resale, particularly when GST is charged at 5% on food. The advice given is that input credit is generally not available for restaurants operating within a park, even when GST is applied at 5%.