https://www.taxtmi.com/caselaws?id=449696 The AAR Gujarat ruled that a restaurant service provider operating under GST notification 11/2017-CT (Rate) at 5% tax rate is generally not entitled to claim ITC on general business expenses when providing only restaurant services. However, if the applicant provides other ITC-eligible supplies, credit may be available under explanation (iv)(b) of the notification, subject to restrictions under section 17(2) of CGST Act. The determination and reversal of ITC for inputs/input services and capital goods would be governed by Rules 42 and 43 of CGST Rules respectively. The applicant's argument that section 17 CGST Act is inapplicable was rejected as it ignored the notification's explanation (iv) provisions. en-us Sat, 03 Feb 2024 00:00:00 +0530 Fri, 25 Apr 2025 18:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449696 The AAR Gujarat ruled that a restaurant service provider operating under GST notification 11/2017-CT (Rate) at 5% tax rate is generally not entitled to claim ITC on general business expenses when providing only restaurant services. However, if the applicant provides other ITC-eligible supplies, credit may be available under explanation (iv)(b) of the notification, subject to restrictions under section 17(2) of CGST Act. The determination and reversal of ITC for inputs/input services and capital goods would be governed by Rules 42 and 43 of CGST Rules respectively. The applicant's argument that section 17 CGST Act is inapplicable was rejected as it ignored the notification's explanation (iv) provisions. Case-Laws GST Sat, 03 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449696