HC issues notice to Centre over input tax credit denial to restaurants

The Gujarat High Court has issued a notice to the Centre seeking to know why the option of input tax credit under goods and services tax (GST) regime is not available for restaurants, unlike others.

This was in response to a writ petition filed by Hardcastle Restaurants, which is the master franchisee for McDonald’s, against the Centre, asking for the option to avail of input tax credit by paying a higher rate of tax.

GST rate on restaurants was cut from 18 per cent to 5 per cent in November 2017, but without any input tax credit. When they were charged GST