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ITC for hotels
Can a Hotel take ITC on raw material (food materials) if they are charging 18% on output service?
Replies (11)
food and beverages are blocked credit, so input are not eligible to claim sir
Can any provide notification please
Blocked credit list {Section 17(5)} refer section
If supplier is providing food, he can take itc on food. As per blocked credit section
yes it is covered under sec17(5)
Can you clarify following.
In Hotel were you are providing such food material in Room Services or In Resturant .& if its in Resturant then whether its 5star hotel & have a room terrif more 7500/- ?????
In Hotel were you are providing such food material in Room Services or In Resturant .& if its in Resturant then whether its 5star hotel & have a room terrif more 7500/- ?????
My question is not on output tax rate, it's about ITC
If you are making supply which is taxable (only) and the input is fully used in making that taxable supply ( i.e. food materials), then you can claim ITC.
| Originally posted by : cherukuru harsha | ||
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Can a Hotel take ITC on raw material (food materials) if they are charging 18% on output service? |  |
As Per Sec 17 ( 5) ITC on Food & Beverages allowed only if Goods/ service are used for towards making taxable outward suppliers @ Full rate
Blocke credit is not applicable if it is meant for furthurence of business in same line of business.So,input credit is available in such case
If your room tariff is > 7500 then only GST can be 18% and ITC can be claimed as required by you.
If room tariff is <7500 then GST rate must be 5% and ITC will not be available.
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