GST on Standalone restaraunt

[Vigneshvishwanathan Chandran]

Hi Members!!! One of my client is going to start standalone Restaraunt service. Kindly guide me for the below queries. Thanks in Advance.

1.GST Rate is 5% without ITC.Initially his sale would not be much higher. But he is liable to pay RCM on Rent is considerably higher amount. Is it possible to opt 18% with ITC on sales if so kindly share me the Notification.

2. In Restaraunt he is going to sale water bottles & Beverages, for that is he required to charge 18% on such sale. If so can he avail ITC for that, even though he is in 5% without ITC. Also is he eligible to avail proportionate ITC on RCM paid on Rent.

AI Summary

Restaurant Owners Navigate Complex GST Choices: 5% vs 18% Tax Rates Impact Input Credit and Business Strategy A standalone restaurant seeks guidance on GST rates and input tax credit (ITC) implications. The primary options are 5% GST without ITC or 18% with ITC, with specific conditions. Packaged water and beverages have different tax treatments, typically at 18%. Rent under reverse charge mechanism has distinct ITC eligibility based on the chosen tax scheme. The restaurant must carefully evaluate its sales model and tax implications to ensure compliance with GST regulations.