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

GST rate choice for standalone restaurants: reduced-rate without ITC versus standard-rate with ITC subject to eligibility.
Standalone restaurants required to tax under the reduced-rate restaurant-service notification must apply the reduced rate without Input Tax Credit; opting for the standard rate with ITC is permissible only where supplies meet specified exceptions such as services linked to certain hotels or distinct catering/composite supplies. Packaged drinking water and aerated/soft drinks are treated as separately classifiable supplies taxed at the standard rate-when supplied outside the restaurant composite service they require separate accounting and permit ITC only if the taxpayer is on the regular ITC-entitled scheme; reverse-charge taxes like rent are not blocked by section exclusions but are recoverable only by regular-scheme taxpayers and common inputs must be apportioned.