ITC on Beverages for Canteen

Hi, 
I have a query and want to discuss about it for general clarification as well.
"XYZ" is doing a business of running College Canteen (Restaurant) and pays GST @ 5% under regular scheme. As per provisions of GST, ITC on Beverages is not allowed. Now, as they sell the Beverages on MRP, should they consider it as inclusive of GST and pay 5% GST on it? 
Also, wanted a clarification if GST ITC shall be allowed to them in any case(if any?) as the restaurants paying 5% output GST shall not avail any ITC? 
Please share your wisdom. Whether paying 18% output tax would allow them to take credit for beverages in any way? 
(P.s- College is not involved in any part)

Thanks in advance! Looking forward to hear some useful insights.