Trading with ITC & Restaurant 5 Tax

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CEO
62 Points Posted on 25 September 2021
Can a Registered dealer do Trading Business with ITC & Restaurant Business without ITC (5% Tax) in the same GST Registration Number. If so, how can the dealer prove that he has availed ITC only for Trading and not availed ITC for Restaurant purchases.
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On 25 September 2021 at 18:33 Report
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Quick Summary
This discussion clarifies whether a registered dealer can operate both a trading business (with ITC) and a restaurant business (without ITC) under a single GST registration. The consensus is that it's possible for regular taxpayers, provided separate books of accounts are meticulously maintained to distinguish ITC claims for trading versus restaurant purchases. The complexity arises if the restaurant business is under the composition scheme, which may necessitate applying the same scheme to the trading business, unless the turnover exceeds the composition limit.

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GST Consultant
15986 Points Posted on 25 September 2021

To prove you can keep separate books of accounts.

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On 25 September 2021 at 22:57
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602 Points Posted on 26 September 2021
I think your case related to composition scheme for restaurant business. so You will have to apply composition to trading business also.
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On 26 September 2021 at 13:56
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CEO
62 Points Posted on 26 September 2021
But our turnover is above composition limit. Only regular tax payer.
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On 26 September 2021 at 13:58
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GST Consultant
15986 Points Posted on 26 September 2021

Yes you can take ITC only if you are in regular scheme.

Keep separate books of accounts.

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On 26 September 2021 at 16:21

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