Posted on by abhishek

Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know: Whether they will be eligible for ITC on crockery items purchased locally in the month of March, 2017 paying VAT of Rs.72,500/-. The goods have been shown as business assets.

If the State VAT law allowed ITC on such goods, the credit was available on the date of purchase.Section 140(1) of the SGST Act, 2017 allows them to carry forward the credit on account of VAT.

(FAQ10 (v): FOOD PROCESSING)