ITC on Pantry Expense
This query is : Resolved
01 July 2025
Under the Factories Act, the provision of a canteen facility for employees is not mandatory. That's why we do not collect input on the catering bill. However, we do purchase sugar and tea powder to provide tea for employees. In the case of quarters, we cook food and provide it to the employees staying there. In this last scenario, we can claim Input Tax Credit (ITC).Is we can claimITC or Not ?
12 August 2025
ITC on Pantry Expenses — Key Points under GST Law:
Provision of food or beverages, outdoor catering, beauty treatment, health services, etc., are classified as “specified services” under Section 17(5) of the CGST Act, 2017, which are blocked from claiming ITC.
Section 17(5)(b) specifically excludes ITC on food and beverages, except when such food and beverages are supplied as part of a composite supply which is a supply of food served in a restaurant or a mess where the supplier is liable to pay GST.
Provisions under Factories Act are irrelevant for GST ITC purposes — the key is the nature of supply and usage.
Provision of food or beverages, outdoor catering, beauty treatment, health services, etc., are classified as “specified services” under Section 17(5) of the CGST Act, 2017, which are blocked from claiming ITC.
Section 17(5)(b) specifically excludes ITC on food and beverages, except when such food and beverages are supplied as part of a composite supply which is a supply of food served in a restaurant or a mess where the supplier is liable to pay GST.
Provisions under Factories Act are irrelevant for GST ITC purposes — the key is the nature of supply and usage.
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