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
ITC not available on food and refreshments
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
As per section 17(5) you cannot claim Input tax credit ITC for such services
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