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ITC IN HOTEL CASE

veera (self) (289 Points)

03 September 2019

should I am eligible to take ITC on my purchases which are for for my hotel resurant.

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4 Replies

Imran khan (17 Points)
Replied 03 September 2019

if you pay 5% on restaurant than itc is not allowed. all other case ITC allowed

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veera (self) (289 Points)
Replied 03 September 2019

i am in normal scheme than can claim itc for my restaurant purchase in hotel

Akshay Jain (Tax Consultant) (1024 Points)
Replied 03 September 2019

As per Notification No. 46/2017-Central Tax (Rate), dated 14th November 2017, standalone restaurants will charge only 5% GST but cannot enjoy any ITC on the inputs.

However, restaurants as part of hotels with room tariffs exceeding Rs. 7,500 still continue pay 18% GST and enjoy ITC.

McDonald’s charges 5% GST and cannot claim any ITC.

Taj’s Grill by the Pool restaurant in Kolkata is a part of the Taj Bengal hotel and so it will charge 18% GST while enjoying ITC.

Shivam RC (Student) (23683 Points)
Replied 03 September 2019

Agree with Akshay Sir's view...

If you are charging 5% GST from your customers, then you are ineligible to claim ITC on your inputs, input services and capital goods. Normal Scheme and Composition Scheme's GST Rate is same for Restaurant Business. Both are not eligible to claim ITC ( Composition Scheme ITC BLOCKED U/s 17(5)(e) read with Section 10(2)(d) of the CGST Act 2017 ). The only difference between the two is that the former will be charging 5% GST from their customers while the later will be paying 5% GST out of their own pocket.

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