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GST INPUT ON CANTEEN SERVICE TO EMPLOYEES

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RASHMIRANJAN DAS

CMA

44 Points Posted on 05 March 2021

Dear Expert,

Our company hired 2 vendors for providing meals and snacks services in our factory canteen. And the third-party vendor charged 5% GST on their invoice and another vendor also charged 18% GST on their invoices. So in both cases can we claim the ITC. Kindly suggest me.

Thank you

Replies (7)

Quick Summary

This discussion explores the eligibility for claiming Goods and Services Tax (GST) Input Tax Credit (ITC) on canteen services provided to employees. While Section 17(5) generally disallows ITC on food and catering, the mandatory provision of food services under the Factory Act 1948 for companies with over 250 employees raises questions about potential ITC claims. Experts advise that ITC is typically not available for such expenses.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 05 March 2021

ITC not available on food and refreshments

sukhwani keyur

351 Points Posted on 05 March 2021

ITC on food and beverages is ineligible u/s 17(5). Therefore you cannot claim such ITC.

Deepak Kumar

453 Points Posted on 06 March 2021

I think my opinion you have claim ITC if you have issue tax invoice for employee mean you have received consideration for serving food to employee

Sonu Maheshwari

Jr. Account & Finance Manager

146 Points Posted on 06 March 2021

ITC ineligible under negative list

RASHMIRANJAN DAS

CMA

44 Points Posted on 06 March 2021

Dear Experts

According to SEC 17(5)(H), we're not eligible to get the ITC on food, beverage, and catering service but According to the factory act 1948, if more than 250 emp in an organization then that organization is mandatory to provide food service. So in such a case, we have a manufacturing company and also providing meals to employees that is free of cost. And the vendor is charging GST @ 5% on their inv so my question is, can I avail to get the ITC benefit. Kindly someone clear me .

Thank You