ITC setoff applicability

This discussion concerns the applicability of Input Tax Credit (ITC) setoff when a business exports goods that are exempt from GST, while also providing restaurant services at a 5% GST rate, all under a single GST number. The core question is whether the ITC from export-related inputs can be set off against the output tax liability of the restaurant services. The response indicates that if the final output (exports) is exempt from GST, the ITC related to those exempt goods cannot be claimed against any other output.