GST ON CANTEEN SERVICES

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This query is : Resolved

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This discussion clarifies the Goods and Services Tax (GST) implications for manufacturers providing canteen services to employees. While GST at 5% is charged by the outsourced provider, input tax credit (ITC) is generally not available for these services, especially if considered personal consumption. The advice confirms that while the arrangement is permissible, claiming credit on this specific expense is typically not allowed.

MAHESHA R

MAHESHA R (Querist)
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20 February 2020 Kindly advise we are manufacturer and we have given outsource for supply of Lunch, dinner to our Employees who are register under the GST act and charging GST @ 5% to us.

On this facility we are collecting some amount from our Employees and balance amount company is making the payment.

Kindly advise this is correct or not and whether we are eligible to take credit on this.