output tax liability of restaurant where tax rate is 5% without ITC.

[NILESH PITALE]

Dear Experts

Whether ITC from other business verticals under same GSTIN be used for offsetting output tax liability of restaurant where tax rate is 5% without ITC.

Please Guide

AI Summary

Can Input Tax Credit from Other Verticals Offset 5% Restaurant Tax? Experts Say No, Must Pay in Cash. A discussion on a forum addresses whether Input Tax Credit (ITC) from other business verticals under the same GSTIN can be used to offset the output tax liability of a restaurant taxed at 5% without ITC. Experts clarify that ITC is not applicable for restaurants under this tax rate, and the tax must be paid in cash. The concept of 'business vertical' has been omitted since February 2019. While some argue ITC can be used across businesses, others emphasize restrictions under composition schemes and specific conditions for restaurants. The debate references rulings and interpretations of GST laws.