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.

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.