GST Liability on canteen food supply to empolyees
This query is : Resolved
04 December 2019
One factory running canteen as it is statutory obligation on the part of employer ( number of employees more than 25). The company is providing grocery, vegetable and milk required for running the factory. The labour contractor is engaged for canteen services. The company is recovered part of the amount from employees and contribute part of the amount.
Request expert opinion on the applicability of GST for the above as there is big confusion because of the following :
1. Section 7 of GST - Supply to related party and distinct person
2. CBIC Press release dated 10.07.2017 , no GST will attract if employer provides service as the part of contractual agreement to the employee.
3. Clarification given to section 17 (5) (b) GST ITC is allowed if the company provides food to meet statutory obligation.
4. Advance ruling confirming GST for canteen food and confirmation by adjudicating advance rule authority for the same
Request expert opinion on the applicability of GST for the above as there is big confusion because of the following :
1. Section 7 of GST - Supply to related party and distinct person
2. CBIC Press release dated 10.07.2017 , no GST will attract if employer provides service as the part of contractual agreement to the employee.
3. Clarification given to section 17 (5) (b) GST ITC is allowed if the company provides food to meet statutory obligation.
4. Advance ruling confirming GST for canteen food and confirmation by adjudicating advance rule authority for the same
04 December 2019
5% GST applicable on canteen services. Calculate the value as supply to related party.
04 December 2019
Thanks for reply. whether GST is applicable for contract employees as they are not related persons
05 December 2019
As a principal employer GST applicable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
