Gst credit in canteen bill and compliance thereof

This query is : Resolved

prachee (Querist)
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04 July 2019 Dear Expert,

We are into manufacturing plant having approx 500 manpower(employee+worker). We are having a canteen in the premises and one vendor is providing service in that canteen, he is raising bill at 5%, based on his bill we are taking GST credit.
Also we pay GST on the recovery of food expenses from the employees+worker @5%.

is what we are doing is correct

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2019 Yes, you are doing right provided you are recovering the full cost.

prachee

prachee (Querist)
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04 July 2019 sir we are recovering subsidised amount from employee , however we are paying GST based on the invoice of the canteen service vendor bill i.e . the full value .

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