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Restaurants ITC



can a restaurant avail ITC

 
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As per section - 17(5)
food and beverages are blocked credits and not available to take credit.
EXCEPT where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
So ur eligible to claim ITC.
 
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Accountant GST Practitioner

No  ITC  for only  restaurant  , 5% GST 

 
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No ITC can be claimed ONLY if registered as composition dealer.
If it is registered as normal tax payer, above explanation will comes into scenario.
 
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Accountant GST Practitioner

Please  confirm  Mr  Prashant Kumar singh are you a composition dealer ?.

 
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ACCOUNTS PROFESSIONAL

As per CGST(rate) Notification no. 46/2017 , Rate for Restaurant is 5% without ITC
Hence Restaurant cannot claim ITC


Note : Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC

Total likes : 2 times

 
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No Sir, I am registered as regular dealer
 
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Student

Absolutely Agree with Pankaj Sir.....

In both cases, i.e. Composition Scheme ( u/s 10 of CGST Act 2017 ) and Regular Scheme ( u/s 22 of CGST Act 2017 ) they have to charge 5% GST without the benefit of INPUT TAX CREDIT ( ITC ).

Hence, Restaurants cannot claim INPUT TAX CREDIT in both the Cases.

EXCEPTION :

As correctly said by Pankaj Sir, " if the Restaurant is in a Hotel where the Declared Tariff is ‚āĻ 7,500 or more, then the Restaurant have to charge 18% GST with full benefit of ITC."

Regards.


The only difference between Composition Scheme Dealers and Regular Taxpayers is that, the former will be paying 5% GST ( without ITC ) on their Quarterly Turnover ( from their own pocket ) and cannot charge it from the Customers and the latter i.e. Regular Taxpayer will be charging 5% GST ( without ITC benefit ) from their Customers.

Total likes : 1 times

 
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thanks to all of you
 
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