ITC in case of restaurant

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2 Points Posted on 21 May 2020
If an existing take away restaurant already charging 5 % without input wants to sale vegetables and grocerry items can input be taken for separate segment as area of sale will be common or what can be done to take the Input?
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On 21 May 2020 at 19:55 Report
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Quick Summary
This discussion addresses how a takeaway restaurant can claim Input Tax Credit (ITC) when also selling vegetables and grocery items. The advice suggests either maintaining separate accounting records for each business line or obtaining a separate GST registration for the grocery trading. If separate books aren't kept, proportionate credit can be claimed based on a specific formula.

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Partner
152 Points Posted on 21 May 2020

Dear sir,

You need to rely on rule 6(3) of cenvat credit rules only. In gst, the concept is same. If you are not maintaining seperate books, then you can take proportionate credit as per formula given.

For more information, please contactcus on psandac @ gmail.com 

 

1 Reply
On 21 May 2020 at 20:20
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Practice
3235 Points Posted on 21 May 2020
Either maintain separate set of books or take another registration as both business line is different
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On 21 May 2020 at 23:44
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GST Practitioner
55067 Points Posted on 22 May 2020
Can do all the business under same GSTN , but need to keep & maintain proper accounting .
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On 22 May 2020 at 00:03
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student
88 Points Posted on 22 May 2020

U need to take separate registeration .....

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On 22 May 2020 at 10:30
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CA-PRACTICE
400 Points Posted on 22 May 2020
As your another business trading in Grocery item is business vertical u need to apply for seperate registration.
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On 22 May 2020 at 23:59

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