Tax has to be charged @18% on supplies of food made from their takeaway counter.
(FAQ 10(iii) : FOOD PROCESSING)
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 can raise one tax invoice for both food and liquor or not
Tax invoice has to be issued for supply of food, while for liquor a bill of supply has to be issued or any invoice as may be required under the provisions of local VAT or sales tax law of the concerned State.
(FAQ 10(ii): FOOD PROCESSING)
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 charge GST @ 12% on supplies made from ground floor or 18%
- Tax will have to be charged @ 18% irrespective of from where the supply is made, first floor or second floor.
- If any part of the establishment has a facility of air conditioning then the rate will be 18% for all supplies from the restaurant.
(FAQ 10(I): FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:Is place of supply required to be mentioned in the tax invoice for local sales also
No. Under Rule 46(b) of the CGST Rules, 2017, the place of supply along with
the name of the State is required to be mentioned in case of an inter–State
supply only.
(FAQ 9(v)(g): FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:I have three shops in the city, can I issue tax invoices using prefix for these different locations
Yes. It may, however, be ensured that the invoice conforms to the requirements under Rule 46(b) of the CGST Rules, 2017.
(FAQ 9(v)(f): FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:Is it compulsory to show the tax amount separately on the face of the tax invoice
Yes, it is mandatory under section 33 of the CGST Act, 2017.
(FAQ 9(v) (e): FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:Will I have to issue tax invoice for all sales that I make i.e. branded or un-branded after getting registered
- Rice put up in a unit container and bearing a registered brand name is taxable @5% and tax invoice has to be issued for supply of taxable goods [ Section 31(1) ofthe CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017].
- For sale of goods exempt from tax i.e. unbranded rice, a bill of supply has to be issued [ Section31(3) (c) of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017].
(FAQ 9(v)(d); FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:When shall I start charging tax i.e. from the date I apply for registration or only after I have got my registration number
- Only from date the registration has been granted.
- The tax invoice also can be issued from that date only.
- Prior to it neither you can issue tax invoice nor charge any tax on the
invoice.
(FAQ 9(v)(c): FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration:Will I get ITC on CGST & SGST paid on packing materials, office stationery, computer and accounting software purchased and lying with me as stock as business assets on the date preceding the date from which I have become liable to pay tax under GST
- A person who takes voluntary registration is entitled to take credit
of input tax in respect of inputs held in stock and inputs contained in semi–
finished or finished goods held in stock on the day immediately preceding the date of grant of registration. - Two important points being that the goods in stock must qualify as “input”
and that the tax paid at the time of its purchase must qualify as “input tax”
under GST. - Any goods which have been capitalised in the books of account will not be
treated as an input. Hence credit on computers will not be available if the
value of the same has been capitalized in the books of accounts. Further, in
terms of section 18(1)(b) of the CGST Act, 2017, taxes paid on accounting
software which were acquired before registration will not be available as
credit since credit is not available in respect of services in such cases. Other
than that, credit shall be available on CGST/SGST paid on packing materials,
etc. subject to conditions andrestrictions spelt out in sections 16 to
18 of CGST Act, 2017.
(FAQ 9 (v) (b) : FOOD PROCESSING)
Assuming, I apply for voluntary registration and obtain GST registration: Will I get ITC on the IGST paid on branded rice lying in stock on the date prior to the date of my liability
Yes, a person who takes voluntary registration is entitled to take credit
of input tax in respect of inputs held in stock on the day immediately preceding the date of grant of registration. In this connection, section 18(1)(b) read with section 25(3) of the CGST Act, 2017 refers.
(FAQ 9(v)(a) : FOOD PROCESSING)