Input tax credit on menu: Food Services sector seeks input tax credit in upcoming budget
The National Restaurant Association of India has raised the issue of the lack of input tax credit for the restaurant industry with the Union finance ministry.
Restaurant services attract 5 per cent GST without input tax credit. The industry is in favour of an optional structure that allows collection of input tax credit, at a higher rate of 12 per cent, along with the current structure.
“We don’t get GST input tax credit. We have written to the finance ministry. There is a budget coming up. For the next six months we are meeting all the finance ministers across states and we are also meeting the finance minister of Bengal very soon. I am hopeful that the GST Rate Rationalisation Committee will look into this,” said Sagar Daryani, CEO and co-founder, Wow! Momo Foods, and vice-president of NRAI.
“Without GST input tax credit, we are getting a situation of double taxation. For example, when we are paying rent, we are paying GST at 18 per cent and then we are collecting 5 per cent from the consumers and paying the government,” he said.
