ITC on outdoor caterer supplying food in company under Factories Act, 1948, Goods and Services Tax - GST

[NAUSHERAWAN SM]

Let me know whether ITC will be eligible of outdoor caterer supplying and serving foods and beverages in a company canteen for the employee registered under Factory Act, 1948.. Also let me know whether any purchases more than ₹ 5000/- for company pantry like tea, biscuits, cold drinks etc from unregistered party will attract GST in RCM.

Posts / Replies

[HimansuSekhar Sha]

Foods are specifically excluded under sec 17(5)

The expenses will attract RCM

[Ramaswamy S]

Foods and beverages are under negative list. Supplies from an unregistered person attracts RCM.

Regards

S.Ramaswamy

[KIRTIKUMAR PUROHIT]

Nature of Expense	Rate of Tax	Whether registered supplier will levy tax	Reverse Charge(If supply is unregistered)	Whether Eligible for Input Credit
Food & Beverages Expense (AC restaurant)	18%	Yes	Yes	No
Mineral water	18%	Yes	Yes	Yes

Outward supply to the same category of business Register in GST for as a part of furtherance of business than recipient can eligible for ITC otherwise Not.

[HimansuSekhar Sha]

More over food items are excluded from the purviews of ITC.