GST – Started By: – IRFAN MALIK – Dated:- 17-2-2019 Last Replied Date:- 18-2-2019 – 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 claim 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 I
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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) 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 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
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