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gst on restaurants

shabaz a (47 Points)

27 July 2019

can we claim ITC on restaurants...?
if yes then is there any transaction limit...,,?
what Is composition rate... and transaction limit?

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3 Replies

Suresh Chand (5 Points)
Replied 27 July 2019

in composition 5% without itc

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shabaz a (47 Points)
Replied 27 July 2019

what is tax rate for regular.....
and can we claim ITC

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Shivam RC (Student) (23683 Points)
Replied 27 July 2019

The Tax Rate for Regular Scheme in case of Restaurant Business is 5% without the benefit of ITC. However, if the Restaurant is in a Hotel where the Declared Tariff is Rs. 7,500 or more per day, then you are required to collect 18% with the benefit of ITC.

The person who have opted to pay GST under Section 10 of the CGST Act 2017 i.e. Composition Scheme are also required to pay GST @ 5% out of their own pocket. The ITC of GST paid is not available in accordance with the Provision of Section 10(4) read with Section 17(5)(e) of the CGST Act 2017.

Warm Regards.