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ITC on capital goods of restaurants

krati (student) (34 Points)

22 January 2019

can we claim itc on capital goods of restaurants purchased eg. a.c. , tables, chairs etc.?

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9 Replies

Arunn Auto Sparess (203 Points)
Replied 22 January 2019

I think you can't take ITC on that. I refer and answer soon

1 Like

shailendra shukla (Bhopal) (1741 Points)
Replied 22 January 2019

no single rate is of 5% on restaurants not elligible for any itc whether capital or inputs....

Sanjiv Rajpoot (3430 Points)
Replied 22 January 2019

no you can't take itc

Shivam RC (Student) (23683 Points)
Replied 22 January 2019

Restaurants are not eligible to claim ITC on inputs, Capital Goods.

Rate is 5% with the benefit of ITC.

2 Like

NITIN KOTAK (SERVICE) (1465 Points)
Replied 22 January 2019

5% without ITC, already issued notification.

1 Like

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 22 January 2019

Yes agreed. Although, if accommodation is Rs. 7,500 or more per day, then the restaurant in such hotel requires to charge 18%. ITC then fully eligible on capital goods, inputs & input services.

HSN 9963, serial (ix) of notification 11/2017-CT(R)

1 Like

subhagan sreerangam (7039 Points)
Replied 01 March 2019

thank you and congratulations

Deepak sharma (Learner) (1431 Points)
Replied 02 March 2019

What if one state's restaurant branch1, transfering capital goods to another branch2 outside state,

Does they need to raise invoice & charge GST ?

Can Branch2 can take ITC of the same ?

Sai Amit Vutukuri (2 Points)
Replied 11 April 2023

Akshay, can you provide a further clarification. When the food is delivered here as a room service then it is 18%,
but here the question asked (I presume) is whether ITC in case of restaurant services, where customers come sit and eat, where output discharged is 5%, can ITC be taken on Capital goods where even depreciation is also not taken as per I.T,can we take input in such cases.

Also a personal question, services/purchases based on invoices taken before 14.11.2017, can take ITC. Is this true?