Ques: A Private limited company is registered in Haryana under GST law. It opened a marketing office of the company in Mumbai (Not registered under GST Law). One of the Hotel in Mumbai organised a corporate event of the company in mumbai itself. Can this company should avail the input GST of this invoice issued by the said hotel?

Ans: Credit on the invoice issue by the hotel must be carrying the GST as CGST AND SGST of which credit will be only available locally that of someone registered there. Else it will not be

Ques: We run a standalone restaurant and charge gst @ 5%

Ans: Service charges are since part of restaurant service and will be treated as composite supply 5% gst should be charged on that portion also.

Ques: We have received the SCN DRC-01 under Section 73 for the tax period FY 2020-21. As we are providing transport services under the forwarding charge mechanism, our taxable supply is ₹33,888,455, and the exempted supply is ₹16,494,079. The notice states that ITC should be reversed on non-business transactions and exempt supplies. The proportion of common ITC to be reversed is based on the extent of exempt supply. The department is asking us to reverse input credit of ₹2,107,390. Please guide us on how to handle this issue

Ans: As per Rule 42 of CGST the credit is available in the ratio of taxable divided by total supply. This rule is there for common credit and for credit directly related to taxable supply can be taken in full. Accordingly you need to check the calculations.