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In case of restaurant sector, option of paying higher rate of tax and availing input tax credit is not available.

Input Tax Credit — The petitioner submitted that by virtue of the impugned Notification dated 14th November, 2017, the rate of tax for the restaurant sector has been fixed at 2.5 % without any input tax credit. It was submitted that the Explanation is also arbitrary inasmuch as, in case of other services, there is an option to pay a higher rate of tax and avail of input tax credit, whereas in case of the restaurant sector, such option has not been granted which amounts to total denial of input tax credit. Notice issued. — Hardcastle Restaurants Private Limited Vs. Union of India [2019] 18 TAXLOK.COM 033 (Gujarat)