Itc restaurant providing both catering and in-house

ITC / Input 169 views 4 replies

Suppose a restaurant is providing both in house and catering services, how will the ITC be arrived at? Restaurant's GST is 5% with no ITC while outdoor catering gst is 18% WITH ITC benefit. My question is how will the costs be apportioned to arrive at ITC availability? Is it by ratio of individual turnover by total turnover? what is the correct way? Maintaining 2 separate books of account would be difficult and we don't know the consumption %! 

Replies (4)
Originally posted by : VR
Suppose a restaurant is providing both in house and catering services, how will the ITC be arrived at? Restaurant's GST is 5% with no ITC while outdoor catering gst is 18% WITH ITC benefit. My question is how will the costs be apportioned to arrive at ITC availability? Is it by ratio of individual turnover by total turnover? what is the correct way? Maintaining 2 separate books of account would be difficult and we don't know the consumption %! 

You can also  charge 5 % Tax on catering Service Without taken ITC 

As per Circular No. 28/02/2018-GST dated 08th January 2018

if your turnover is below Rs 1.5crore* then you can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.

In composition scheme, you are liable to pay gst @ 5% on your total sales turnover to the government
And shall not collect any gst from the customers from such supplies.

It is easy to maintain accounts in composition type.
It is better to go with composition gst registration.
Even without composition the rate is only 5% is what I read.
Originally posted by : VR
Even without composition the rate is only 5% is what I read.

Yes


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