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GST FOR CAPITAL EXPENDITURE IN DELIVERY KITCHEN RESTAURANT, Goods and Services Tax - GST

Issue Id: - 114199
Dated: 2-10-2018
By:- Kratant Khandelwal
GST FOR CAPITAL EXPENDITURE IN DELIVERY KITCHEN RESTAURANT

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Dear Sir,

I am launching a delivery kitchen model for a restaurant where I will be only supplying food through my own riders and third party deliveries like zomato etc. Now my query is that I am incurring expenditure for kitchen equipment and construction and various other expenditures and paying GST @ 18% on them, will I be eligible for getting a refund on the same from the government? as my tax bracket lies in 5% under GST, and tax paid is at @ 18% for construction kitchen equipment lighting consultancy etc.

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Showing Replies 1 to 4 of 4 Records

1 Dated: 2-10-2018
By:- Yash Jain

Dear Sir,

Congratulation on your new restaurant and we hope to come and dine ;)

Sir, as per Government notification No. 46/2017-Central Tax (Rate), dated 14th November 2017, standalone restaurants will charge only 5% GST but cannot enjoy any ITC on the inputs.

Hence though your model if a delivery model, but unfortunately it will be classified as restaurant service and eligibility for ITC Will be disallowed.

Following is the tabulated information which will give a brief summary of ITC Availability for various Restaurant Scenarios and as under,

Type of Restaurants

GST Rate

All restaurants

5% no ITC

Restaurants within hotels (room tariff <7,500- 5% without ITC

5% no ITC

Restaurants within hotels (room tariff >7,500 ) still 18% with ITC

18% with ITC

Outdoor catering

18% with ITC

Comments from esteemed members highly solicited


2 Dated: 2-10-2018
By:- DR.MARIAPPAN GOVINDARAJAN

In my view you are not eligible for refund.


3 Dated: 3-10-2018
By:- Kratant Khandelwal

Thank you so much for your valuable responses, it has helped me clear my doubt.

PS: Most welcome to come and dine although it is a delivery kitchen, if you are in Gurgaon please let me know I will send you some good food.


4 Dated: 5-10-2018
By:- Ganeshan Kalyani

Sure Sir.


1

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