CATERING FOR COMPANY CANTEEN

1)SAC-9963

2)Descripttion-Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration.

3)Rate-18%

Canteen supplies in any organisation by self or by third-party contractors have been treated as outdoor catering in the service tax regime and the tax was paid accordingly. 

Now in GST regime there is no clarity regarding whether the food provided to employees by hiring 3rd party is to be treated as canteen service or catering service.

In my personal opinion if a 3rd party is hired to provide food then it is catering service attarcting 18% GST with ITC, but if I employ a cook and some waiters to provide food in my own canteen then it is canteen service attracting 5% GST without ITC. Now, we certainly need clarification on this.