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

Input tax credit restriction for standalone restaurant supplies prevents recovery of GST paid on capital expenditure.
Standalone and delivery-only restaurants are classified as restaurant services charged at the lower rate and are not eligible to claim input tax credit on inputs or capital goods; accordingly GST paid on kitchen equipment, construction and related expenditures cannot be recovered. Exceptions include restaurants within hotels with higher room tariffs and outdoor catering, which attract a higher rate and allow ITC.