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

Opting 5% no-ITC for restaurant sales bars ITC on inputs; bakery supplied at 18% allows ITC; elect 18% before FY If a taxpayer opts to tax restaurant services at 5% under the no-ITC route, they cannot claim input tax credit on any inputs including plant and machinery used for those 5% supplies. If plant and machinery is exclusively used for manufacturing bakery products that are supplied separately at 18%, ITC on such inputs is allowable. Taxpayers should verify whether all activities qualify for the 5% no-ITC option; alternatively, before the next financial year they may elect to treat the premises as not covered by the no-ITC rate and opt to pay 18% and claim credits, subject to procedural requirements.