Businesses Push for ITC Restoration on Food & Beverages – GST Council to Decide Soon

The Goods and Services Tax (GST) Council is evaluating the possibility of reinstating Input Tax Credit (ITC) for businesses on expenses related to food and beverages. Currently, under Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017, ITC on such items is generally restricted, except when used for making an outward taxable supply of the same category or as part of a composite or mixed supply. The proposed change aims to reduce the tax burden on businesses, especially in the hospitality and food service sectors, by allowing them to claim credits on these expenditures. This move could enhance compliance and streamline tax processes for numerous enterprises. 

Source: taxguru.in