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Issue ID : 114199
- 0 -

GST FOR CAPITAL EXPENDITURE IN DELIVERY KITCHEN RESTAURANT

Date 02 Oct 2018
Replies4 Answers
Views 5441 Views

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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- 0
Replied on Oct 2, 2018
1.

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

- 0
Replied on Oct 2, 2018
2.

In my view you are not eligible for refund.

- 0
Replied on Oct 3, 2018
3.

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.

- 0
Replied on Oct 5, 2018
4.

Sure Sir.

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