Applicant providing restaurant services cannot pay GST @ 18 per cent and avail ITC as services being offered by applicant are classified under heading 9963 and group 99633 attracting GST rate of 5 per cent without claiming input tax credit.Ruling by TheAuthority of Advance Ruling Karnataka In matter of Coffee Day Global Limited.

Applicant providing restaurant services cannot pay GST @ 18 per cent and avail ITC : AAR

9.4 The applicants contention suggests their view that the right to input tax credit is unfettered. However the said Act, in Section 16(1), reads Every registered person shall, subject to the conditions and restrictions as may be prescribed .’. These words indicate that the right to avail input tax credit is not an absolute right and conditions and restrictions may be prescribed for its availment. The contention of the applicant, thus, does not hold good.
10. In view of the foregoing, we pass the following Ruling:

RULING

The Applicant is not entitled to pay the GST @ 18% with input tax credit as the services being offered by the Applicant are classified under a heading attracting GST @ 5%, without input tax credit.

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