can a restaurant avail ITC
8 Replies
gupta gopavarapu
(109 Points)
Replied 09 November 2018
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.
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.
prasad Nilugal
( GST Practitioner & Accounts )
(14870 Points)
Replied 09 November 2018
No ITC for only restaurant , 5% GST
gupta gopavarapu
(109 Points)
Replied 09 November 2018
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.
If it is registered as normal tax payer, above explanation will comes into scenario.
prasad Nilugal
( GST Practitioner & Accounts )
(14870 Points)
Replied 09 November 2018
Please confirm Mr Prashant Kumar singh are you a composition dealer ?.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 09 November 2018
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
Hence Restaurant cannot claim ITC
Note : Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC
prashant Kumar Singh
(student)
(247 Points)
Replied 09 November 2018
No Sir, I am registered as regular dealer
Shivam RC
(Student)
(23683 Points)
Replied 09 November 2018
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 ₹ 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.
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 ₹ 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.
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