TaxTMI 
TaxTMI 
A regular dealer is making pastries and sell them thru Zomato swiggy.
Applicable gst rate is 18% with HsN 1905
He is eligible to claim itc on his purchases.
Is my understanding correct?
Pls express views
iTC on pastries manufacturing
22 Apr 2021 
7 Replies 
5321 Views Asked by
Input tax credit admissible for pastries sold via food-delivery platforms; supply treated as goods, not restaurant service.
Pastries manufactured under HSN 1905 and sold through food-delivery platforms are supplies of goods and attract the standard GST rate for such goods. The manufacturer may claim input tax credit on purchases, subject to statutory conditions and exclusions; the food-delivery platforms function as intermediaries and do not change the supply's character. Concessional treatment and ITC restrictions applicable to restaurant services are distinct and apply where the supply is part of a restaurant service. (AI Summary)
Pastries manufactured under HSN 1905 and sold through food-delivery platforms are supplies of goods and attract the standard GST rate for such goods. The manufacturer may claim input tax credit on purchases, subject to statutory conditions and exclusions; the food-delivery platforms function as intermediaries and do not change the supply's character. Concessional treatment and ITC restrictions applicable to restaurant services are distinct and apply where the supply is part of a restaurant service. (AI Summary)