ITC IN HOTEL CASE

ITC / Input 748 views 4 replies
should I am eligible to take ITC on my purchases which are for for my hotel resurant.
Replies (4)
if you pay 5% on restaurant than itc is not allowed. all other case ITC allowed
i am in normal scheme than can claim itc for my restaurant purchase in hotel
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.  
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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