GST FOR CAPITAL EXPENDITURE IN DELIVERY KITCHEN RESTAURANT

[Kratant Khandelwal]

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.

AI Summary

Restaurant Owner Denied GST Refund on Delivery Kitchen Expenses Due to 5% Rate Without Input Tax Credit Benefit. A restaurant owner inquired about the eligibility for a GST refund on capital expenditures for a delivery kitchen, given that they pay 18% GST on expenses while operating under a 5% GST bracket. A respondent clarified that, according to government regulations, standalone restaurants, including delivery models, are subject to a 5% GST rate without the benefit of Input Tax Credit (ITC). Therefore, the owner is not eligible for a refund on the GST paid for kitchen equipment and construction. Other forum members confirmed this interpretation, and the owner expressed gratitude for the clarification.