ITC ON 5% GST with NO ITC,can weclaim itc on plant and machinery and 18% itc for hotel,Backery&restuarants

[Amrutha Jain]

A  restaurants,hotel and Backery Business coming under one GST and choosed 5% GST but not avail itc in this case can we take ITC on Plant and machinery and  18% itc on bakery production items ?

AI Summary

Claiming ITC on Plant, Machinery, and Bakery Items under 5% GST Scheme Without ITC Not Allowed A business operating a restaurant, hotel, and bakery under a single GST registration has opted for a 5% GST rate without availing input tax credit (ITC). The question arises whether ITC can be claimed on plant and machinery and at 18% on bakery production items. Under GST law, if a taxpayer opts for a composition scheme or a concessional rate without ITC, they generally cannot claim ITC on inputs or capital goods related to that scheme. Therefore, ITC on plant and machinery or bakery items at 18% would not be permissible if the business has chosen the 5% GST rate without ITC for the combined activities. Separate registrations or different tax treatments may be required to claim ITC on specific goods or services.