Implications of gst on food allowances
This query is : Resolved
21 July 2024
if food allowances other than fees reciept given to an domestic ipl player is appicable to gst implication,and if it is applicable then what should be hsn code and tax rate for that treatment
13 August 2025
1. Is GST Applicable on Food Allowances?
Food allowances paid to employees or players as a part of salary or contractual agreement are generally considered as a reimbursement of expenses or part of contractual service.
If the food allowance is paid as part of salary, it does not attract GST because salary is not a supply under GST.
However, if the food allowance is given separately as a service charge or reimbursement under a contract, it may attract GST as supply of food service.
2. In the Context of Domestic IPL Player
If the food allowance is part of the contractual service fee paid to the player or their service provider, then it is considered as a supply of food service.
If paid directly as salary component, GST not applicable.
3. If GST is Applicable, What is the Tax Rate and HSN Code?
HSN Code: 9963 (Services supplied by Restaurant or Catering Services)
GST Rate: 5% (without ITC) or 18% (with ITC), depending on the service provider and agreement.
4. Summary Table
Scenario GST Applicability HSN Code GST Rate
Food Allowance as part of salary No GST N/A N/A
Food Allowance billed as Catering Service or Reimbursement Yes, GST applies 9963 5% or 18%
5. Additional Notes
If the food allowance is paid as per diem or reimbursement under an agreement for player services, it is advisable to clarify the nature of supply in the contract.
GST treatment depends on whether the allowance is part of salary or separate supply.
Food allowances paid to employees or players as a part of salary or contractual agreement are generally considered as a reimbursement of expenses or part of contractual service.
If the food allowance is paid as part of salary, it does not attract GST because salary is not a supply under GST.
However, if the food allowance is given separately as a service charge or reimbursement under a contract, it may attract GST as supply of food service.
2. In the Context of Domestic IPL Player
If the food allowance is part of the contractual service fee paid to the player or their service provider, then it is considered as a supply of food service.
If paid directly as salary component, GST not applicable.
3. If GST is Applicable, What is the Tax Rate and HSN Code?
HSN Code: 9963 (Services supplied by Restaurant or Catering Services)
GST Rate: 5% (without ITC) or 18% (with ITC), depending on the service provider and agreement.
4. Summary Table
Scenario GST Applicability HSN Code GST Rate
Food Allowance as part of salary No GST N/A N/A
Food Allowance billed as Catering Service or Reimbursement Yes, GST applies 9963 5% or 18%
5. Additional Notes
If the food allowance is paid as per diem or reimbursement under an agreement for player services, it is advisable to clarify the nature of supply in the contract.
GST treatment depends on whether the allowance is part of salary or separate supply.
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