Question ID :
GST on restaurant
A Food Operator has taken a franchisee, serving ice Cream to their customer through the Retail shops in India and Also through E-commerce Operator with the rate of 5%, Such person has also not taken any Composition scheme for the Restaurants, Now the queries are:-
1. Franchisee fees, Rental for retail shops could be allowed as an input tax credit.
2. If such person will give their franchisee rights to other person and receipt some amount, then can we offset the franschisee fees Input tax credit against the tax liability on Receipt amount.
Jul 20, 2019