TaxTMI 
TaxTMI 
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 ?
ITC ON 5% GST with NO ITC,can weclaim itc on plant and machinery and 18% itc for hotel,Backery&restuarants
12 Aug 2025 
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Reduced GST rate with no input tax credit bars ITC, but exclusively used manufacturing supplies may still allow credit.
Election to supply under the reduced GST rate with the no ITC option bars claiming input tax credit for that activity, including plant and machinery used for restaurant services. Plant and machinery exclusively used in the separate manufacture and supply of bakery products taxable at the standard rate remain eligible for ITC. Taxpayers may reassess classification of premises or activities and, by filing the prescribed annexure before the next fiscal year, opt out of the specified reduced rate/no ITC regime to pay the standard rate and claim credits prospectively. (AI Summary)
Election to supply under the reduced GST rate with the no ITC option bars claiming input tax credit for that activity, including plant and machinery used for restaurant services. Plant and machinery exclusively used in the separate manufacture and supply of bakery products taxable at the standard rate remain eligible for ITC. Taxpayers may reassess classification of premises or activities and, by filing the prescribed annexure before the next fiscal year, opt out of the specified reduced rate/no ITC regime to pay the standard rate and claim credits prospectively. (AI Summary)