HOTEL WITH RESTAURANT BELOW TERIFF RS, 7500 PER DAY

[UDAYKANT PATHAK]

SIR,

After 15th November as Per Notification No. 46/2017-Central Tax in a hotel business is.

will get ITC on building maintenance,Telephone Exp,Bank charges, legal fees and other exp related for accommodation service, except of Restaurant Exp ?

Please Guide me.

[ANITA BHADRA]

Notification No 46/2017 states - Rate is 5 % without ITC .

No where in the notification , it is mentioned that ITC on building maintenance,Telephone Exp,Bank charges, legal fees and other exp related for accommodation service, except of Restaurant Exp

Here is the notification :-

Notification No. 46/2017 states -Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied- Rate is 5 % without ITC

[CSSANJAY MALHOTRA]

Input Tax Credit is available on all services in Hotel except related specifically to Restaurant If you are charging GsT @5%.

In case of common ITC, same is to be availed proportionately on Hotel turnover except for supply of food in restaurant or any part as specified in Notification.

AI Summary

Input Tax Credit available for hotel services but excluded for restaurant supplies under the notified rate without ITC. Notification No. 46/2017 treats supplies of food and drink by restaurants and similar establishments as taxable at a notified rate without ITC, so expenses and inputs attributable specifically to restaurant supplies do not qualify for Input Tax Credit. ITC is available for hotel accommodation and other non-restaurant services, and common ITC must be apportioned proportionately on the hotel turnover excluding restaurant food supplies.