Input on Resturant

chandan Tiwari (Student CA IPC / IPCC) (180 Points)

28 November 2021

I am running hotel with restaurants and I have input of both fooding and non fooding Items. I charge GST @ 5%. Can I adjust Input of non fooding items with GST output of restaurant sale ???

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11 Replies

sabyasachi mukherjee (7902 Points)
Replied 28 November 2021

Yes you can

chandan Tiwari (Student CA IPC / IPCC) (180 Points)
Replied 28 November 2021

Ok...thank you

CA Altamush Zafar (GST Consultant) (11436 Points)
Replied 28 November 2021

ITC not available to restaurants.

chandan Tiwari (Student CA IPC / IPCC) (180 Points)
Replied 28 November 2021

Please clear my doubts

Varshit Shah (Self Employed) (676 Points)
Replied 28 November 2021

If your room tariff is less than 7500 or if you are.running only the.restaurant.or cafw then u have to charge GST for.your food items @ 5% GST. This rate.of 5% comes with the condition that restaurants should not take benefit of GST paid on their inputs being food and non food items used in restaurant.

Pankaj Rawat (GST Practitioner) (51717 Points)
Replied 28 November 2021

No you cannot .

sabyasachi mukherjee (7902 Points)
Replied 29 November 2021

It's restaurant not hotel . slab applies for hotels

chandan Tiwari (Student CA IPC / IPCC) (180 Points)
Replied 29 November 2021

It's restaurant within hotel

sabyasachi mukherjee (7902 Points)
Replied 29 November 2021

Then it's ok

chandan Tiwari (Student CA IPC / IPCC) (180 Points)
Replied 29 November 2021

Sir can I take input of other product purchased that is not used in restaurants but only used in room and room services with output of restaurant ????

Varshit Shah (Self Employed) (676 Points)
Replied 29 November 2021

Room services will have same impact as food served in restaurant. so you cannot take benefit of GST paid for inputs or any other non food item used for room service.

as far as GsT paid on input or other products used for rooms or accommodation services , which are purely used for these services can be claimed. Pls keep proper records to prove that such inputs are used in room division only. if possible avoid GsT of common inputs used in restaurants and room.division.

for the rate of GST on restaurant pls refer below link for more clarity

https://cleartax.in/s/impact-gst-food-services-restaurant-business