Gst on canteen or outdoor catering

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Yogesh Ozha (Querist)
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05 January 2018 Hello,

Can anyone help me to know the difference between "Canteen" and "Outdoor Catering", with respect to GST? A service provider has a contract with a Company to provide food and related articles to the Company's employees. The rates per person per breakfast / lunch / snacks / dinner are pre-decided between the Company and the service provider. A monthly bill is raised on the Company. Nothing is charged to the employees by the service provider.

Prior to notification no. 46 / 2017, the service provider used to charge GST @ 18%. But the notification mentions 5% GST without ITC for "...provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises...". Under GST neither canteen nor outdoor catering has been properly defined. But, I came across a Service Tax definition of Outdoor Caterer as "“Outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services."

Can someone please help me understand what would be applicable in such case? GST @18% or @5%?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2018 This service will fall under canteen Service 5% GST applicable. Food supply to employees will fall under canteen Service.
Food supply at functions fall under outdoor catering.

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Yogesh Ozha

Yogesh Ozha (Querist)
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06 January 2018 Thank you for the reply Sir.

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