ELIGIBLE TO AVAIL ITC OR NOT
narayan (accountant) (23 Points)
21 January 2021
Whether restaurants under GST CAN AVAIL ITC ON SWIGGY AND ZOMATO COMMISSION BILLS PLS CLARIFY
3 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14692 Points)
Replied 21 January 2021
From 1/10/2019 GST applicable for stand alone restaurants is 5% with No ITC , so can not avail Input Tax Credit just check Notification .
Shivam RC
(Student)
(23683 Points)
Replied 21 January 2021
Restaurants cannot claim Input Tax Credit ( ITC ) on their Inward Supplies ( Purchases ).
As per Rate Notification No. 46/2017 - Central Tax ( Rate ), dated 14th November 2017, Standalone Restaurants ( i.e. not within a Hotel, Guest House, Inn, etc ) are required to charge 5% GST from their customers and they will not be entitled to claim Input Tax Credit ( ITC ). This notification came into effect from 15th November 2017.
Moreover it was also clarified vide Notification No. 20/2019 - Central Tax ( Rate ), dated 30th September 2019, that Supply of Restaurant Services "other than at Specified Premises" would attract GST @ 5% without the benefit of ITC. This Notification came into effect from 01st October 2019.
Therefore you cannot claim ITC on Restaurant Services unless you are providing Restaurant Services within a "SPECIFIED PREMISES" ( like Hotels having declared tariff of more than Rs. 7,500 per unit per day ).
NOTE : "SPECIFIED PREMISES" means premises providing hotel accommodation services having declared tariff of any unit of accommodation above Seven thousand Five hundred rupees per unit per day or equivalent.
Hope it is clear now...
As per Rate Notification No. 46/2017 - Central Tax ( Rate ), dated 14th November 2017, Standalone Restaurants ( i.e. not within a Hotel, Guest House, Inn, etc ) are required to charge 5% GST from their customers and they will not be entitled to claim Input Tax Credit ( ITC ). This notification came into effect from 15th November 2017.
Moreover it was also clarified vide Notification No. 20/2019 - Central Tax ( Rate ), dated 30th September 2019, that Supply of Restaurant Services "other than at Specified Premises" would attract GST @ 5% without the benefit of ITC. This Notification came into effect from 01st October 2019.
Therefore you cannot claim ITC on Restaurant Services unless you are providing Restaurant Services within a "SPECIFIED PREMISES" ( like Hotels having declared tariff of more than Rs. 7,500 per unit per day ).
NOTE : "SPECIFIED PREMISES" means premises providing hotel accommodation services having declared tariff of any unit of accommodation above Seven thousand Five hundred rupees per unit per day or equivalent.
Hope it is clear now...
narayan
(accountant)
(23 Points)
Replied 23 January 2021
dear sir
ecommerce operators like swiggy and zomato raise bills on restaurants TO CHARGE COMMISSION +GST 18%
WHETHER RESTAURANT CAN AVAIL CREDIT ON THE ABOVE PLS CLARIFY
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