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
- TDS 194-T applicability
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Applicability of GST on Salary Reimbursement Component
- GST ITC REVERSE
- TDS on TRUST
- Consolidated financials
- New GST registration for new place of business.
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- Dep. as per companies act
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
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
Quick Links
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
ARTICLESHIP
21 September 2026
CA Article Assistant
KK & Company Chartered Accountant
Pune
CA Inter
View Details
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
Featured
11 September 2026
Audit Executive
RBSM Corporate Advisors Private Limited
Pune
CA
View Details
CCI
Pro
CAclubindia
