banner_ad

GST Liability on canteen food supply to empolyees

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
04 December 2019 5% GST applicable on canteen services. Calculate the value as supply to related party.
Profile Image

A.S.SUNDARARAJAN

Profile Image

A.S.SUNDARARAJAN (Querist)
04 December 2019 Thanks for reply. whether GST is applicable for contract employees as they are not related persons
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
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


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details