Our client is running refreshment and Sweets business. At present he has opting composition scheme in GST as his turnover is below 1.5 crore, but now he wants to migrate his composition scheme to regular tax payer of GST Act for claiming the ITC on purchase side. Mainly he has to give parcel facility to the customer and partly is self-service. So my query is, if he adopts the regular scheme of GST, can he claim the ITC on purchases?
As decided in the 23rd meeting of GST council it was decided that all stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.
No ITC is available in restaurant business whether the restaurant is falling under composition scheme or in regular.