- No you will not be treated as restaurant services. Yes, you can claim ITC.
ITC
Iam having food stall...i use to manufacture samosa namkeen and some sort of other eatable items and sell them over the counter... i don’t provide service to person to sit and eat.. so do i am considered as restaurant and am not eligible for itc? But iam providing over the counter sale ..so do i take itc?
Asked 5 years ago in GST
Also my sale is 95 percent taxable and 5 percent exempted.. so i have to reverse the itc on capital goods of past 5 years proportional to monthly sale of taxable and exempted.. its a very cumbersome process.. one have toh remember capital goods of past 5 years .. Could u suggest me the other way to avoid this problem.. or i have to stop the sale of exempted supply to avoid the reversal of itc on capital goods..? If exempted supply is in sale than only there is reversal of itc.. or there is also other conditions for reversal of itc on capital goods?
Asked 5 years ago
Dear Sir,
Yes, you can claim the ITC.
Hi
No. Your services shall not be considered as a restaurant service.
ITC shall be available.
Reversals shall be required under Rule 42 and 43 if input services, goods or capital goods are used for providing taxable as well as exempted supplies.
In case, the exempted supply does not use such supplies, no reversals are required.
Hello,
No, your stall won't be considered as a restaurant. ITC would be available.
I hope that this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Reversal of ITC on inputs, input services, and capital goods is to be made if these are used for providing both taxable and exempted supplies.
ITC on capital goods used for taxable and exempted supplies will have to be reversed. The useful life of such capital asset will be taken as 5 years from the date of purchase.
996331 Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of fo Since take away services r included in above category of restaurant.. so the sale over the counter of samosa and namkeen is also take away ... so i am considered as restaurant?
Asked 5 years ago
Sec 17(2) of the CGST Act, 2017 provides that where the goods or services are used partly for effecting taxable supplies (including zero rated) and partly for exempt/ non-business use then the amount of credit as attributable to exempt supplies or non-business use shall be reversed as per Rule 42/43 of the CGST Rules, 2017.
Technically you wont be covered under definition of restaurant, so you can claim ITC.
No there is no easy way you will have to undertake this cumbersome exercise.
But since you are just selling food which is not specifically covered elsewhere so you might get covered under 9963 and not eligible for ITC.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
In my opinion, this would not be essentially a provision of service. This would be categorized as supply of goods only.
However, the scenario would be clear only on clarification from the department or AAR.
No, your services would be considered as restaurant.
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