TaxTMI 
TaxTMI 
ITC eligibility of restaurant when food is purchased from another restaurant
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....TC eligibility of restaurant when food is purchased from another restaurant<br> Query (Issue) Started By: - Palanisamy KS Dated:- 12-4-2023 Last Reply Date:- 15-4-2023 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>A chain of restaurants has one central kitchen in Pondicherry (close to the Tamilnadu border) for supplying food (in fully cooked and semi-coooked form) to outlets located in P....
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....ondicherry. Since one outlet in Tamilnadu is located near the Pondicherry border, food from this main kitchen is also supplied to the outlet in Tamilnadu for which 5% IGST is charged by the Pondicherry Main Kitchen. The outlet located in Tamilnadu receives the food from Pondicherry Main Kitchen and uses it to supply food to end consumers who visit the outler. Can the Tamilnadu outlet avail ITC on ....
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....the food received from Pondy Main Kitchen since it is being used by it to resupply the same food to end consumers by charging 5% GST? Reply By Kiran Tahelani: The Reply: According to sr. no 7 of the Notification no 11/2017 read with explanation no (iv), ITC is not available to the restaurant service provider. Reply By Padmanathan Kollengode: The Reply: Agree with Ld expert. No ITC can be avai....
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....led where the food is supplied to customer at 5%. Reply By Shilpi Jain: The Reply: Maybe a representation should be made to the Govt. to enable credit in this regard. Also there is lot of confusion regarding taxability for this industry. Whether at all the supply made by the Pondicherry unit can be regarded as a restaurant service and so taxing it at 5%?<br> Discussion Forum - Knowledge Sharin....
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