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TMI BlogITC on inputs by Hotel having restaurant alsoX X X X Extracts X X X X X X X X Extracts X X X X ..... Query relating to ITC on F B material purchased by hotel (having restaurant): I have a hotel with restaurant in its premises. Following are GST sales:- 1. Accommodation with breakfast (package sales) - GST charged by hotel is 12/18% 2. Accommodation with breakfast lunch/dinner (package sales) - GST charged by hotel is 12/18% 3. Direct restaurant sales - GST charged is 5% In such case how to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim ITC on F B item as no ITC is allowed if GST charged is 5% but package sales include breakfast/lunch/dinner GST charged is 12/18% my 2nd query is Hotel also provide breakfast,lunch dinner to its employees (hotel + restaurant staff). Can I claim ITC on inputs for providing food to employees. Food is provided free of cost to employees. Plz suggest. thanking in anticipation. regards - Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Spudarjunan S - The Reply = Dear Sir, Reply to Q.1 - The reply to your Q.1 will have two fragments (i) In case of your package sale the ITC on food and beverages will be available as there is no restriction under section 17(5) of CGST Act,2017 if you provide the same category of goods or services or both or as an element of a taxable composite or mixed supply. In your case you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are providing it as a Composite supply. (ii) In case of your normal restaurants sales, provided you don't have rooms with per day transaction value more than ₹ 7,500/- you need to discharge GST @ 5% without any ITC and also treat the same as exempt supply for the purpose of Rule 42 43 of CGST rules . i.e. reversal of ITC relating to ITC. - refer notification no. 13/2018 CT(R) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26.07.2018 . Hence in your case, avail the entire ITC of food and beverages and reverse the ITC related to 5% outward supply based on Rule 42 43 of CGST rules . Reply to Q.2 - In light of the notification no.13/2018 CT(R) dated 26.07.2018 you have to charge 5% GST on supply of food and beverages services without availing ITC. However, based on the CGST Amendment Act,2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f 01.02.2018, you can avail the ITC on such supplies to employees provided the same is mandated under any law in force as on date. (Reason :- Notification can't override the Act) - Reply By Ganeshan Kalyani - The Reply = Avail entire credit and then reverse credit proportionate to the outward supply attracting 5% Gst. - ITC on inputs by Hotel having restaurant also - Query Started B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y: - IRFAN MALIK Dated:- 17-2-2019 Goods and Services Tax - GST - Got 2 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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