Question

I am running restaurant and issuing bill @ 18% from 1.4.2017 to till 14.11.2017 under gst act. and I am taking full modvat of my purchases in same period (1.4.2017 to 14.11.2017) Now from 15.11.2017 i charged 5% on food supply but on some bills i m charging 18% due to mistake of my accounts department. can i take a modvat of my purchased on prorata basis from 15.11.2017 to till today because i m supplying food @ 18% to my customers.

Answer

In case of Restaurant service, GST cannot be charged at different rates on the basis of selective invoices. Restaurants are liable to charge GST @ 5% without claiming ITC as per s.no. 7(i) of Notification no. 11/2017 Central tax (rate).

Further it is clarified vide Decision of Authority of Advance Ruling of Karnataka in case of M/s Coffee Day Global Limited. The same is enclosed herewith. (Reply dt.23/11/2018)