In a document containing Frequently Asked Questions (FAQs) n the GST, the Central Board of Excise and Customs (CBEC) has recently clarified that a manufacturer of taxable food items is eligible to claim input tax credit on the rental amount if the factory is situated in rental premises.
It also said that 18 per cent GST is applicable to food supplied in non-A/C areas of an A/C restaurant. “If any part of the establishment has a facility of air-conditioning then the rate will be 18 percent for all supplies from the restaurant,” it said. In such cases, the 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, it added.
It further clarified that cold drinks (non-alcoholic beverages) and ice-cream when served in Non-A/C restaurant along with food is chargeable at a rate of 12 per cent.
Read the full text of the FAQs below.
