In 23rd meeting of GST council, one of the decisions is rate of tax for restaurants reduced to 5% with no ITC. I have few concerns regarding this.
1. No ITC means ITC on inputs only or even ITC on capital goods is not allowed?
2. what will be the treatment of ITC already taken?
No ITC means itc on inputs or itc on inputs as well as capital goods
Replies (7)
Wait for Notification form the GOVT , may be applicable from 15/11/2017
sir, notification will come, everybody waiting for it. but key questions remain same, notification will also say no ITC for restaurants but no ITC means what? and wat abt ITC already availed?
AS FAR AS I UNDERSTAND, THERE WILL BE NO CHANGE IN ALREADY AVAILED ITC COS YOU AVAILED IT AS PER THE NORMS PREVELANT AT THAT TIME
NO ITC MEANS FOR BOTH CAPITAL AND REGULAR GOODS
but what about the ITC in the stock? do we need to reverse the ITC as on 15.11.2017(assuming notified date is this)?
also I feel that no ITC doesn't mean that restaurant owners will be deprived of ITC on capital goods. pls give some reference for or against it?
also I feel that no ITC doesn't mean that restaurant owners will be deprived of ITC on capital goods. pls give some reference for or against it?
yes if u can reversal credit
YOU MAY AVAIL UNUSED ITC FOR PAYMENT FOR FURTHER SUPPLIES AFTER 14TH NOVEMBER. BUT FROM 15TH NOVEMBER ONWARDS YOU CANNOT CLAIM ANY INPUT ON GOODS/SERVICES/CAPITAL INPUTS.
Verygood ? Nirmalji
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