13 January 2023
Hi, Registered person has both restaurant and hotel in same premises. ITC is taken on hotel accomodation business and in case of common itc and capital goods used for both the services proportional ITC relating to restaurant turnover is being reversed each month. ITC from hotel accomodation business is being used to set off the liability of the restaurant business. As per CGST Act and notifications it has been mentioned that ITC on restaurant is not allowed. Is there any text from Govt. stating that GST on restaurant service should only be paid through cash and not through eligible ITC from Hotel accomodation?
CAclubindia
