There is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned & supplies food as well as liquor, the ground floor serves only food & is non air conditioned. This restaurant wants to know --- (iv) Can they claim ITC of CGST & SGST paid on crockery items to be used in restaurant? (v) 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 ?
(iv) Yes,they can claim ITC of CGST and SGST paid on crockery items to be used in restaurant. It may stated that they are entitled to credit of even IGST paid where such goods are procured from outside the State against a tax invoice.
(v) 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.