433 Points
Joined February 2020
Certainly! Let’s delve into the GST rates applicable to catering services in India.
Outdoor Catering Services:
Outdoor catering refers to the supply of food or other consumables at events, conferences, marriage halls, exhibition halls, and other outdoor or indoor functions.
If the outdoor catering is provided by any person other than suppliers providing hotel accommodation at specified premises or suppliers located in specified premises, the applicable GST rate is 5%. However, Input Tax Credit (ITC) is not available in this case.
If the outdoor catering is provided by suppliers who offer hotel accommodation at specified premises or suppliers located in specified premises, the applicable GST rate is 18%, and ITC is available1.
Composite Supply of Outdoor Catering with Renting of Premises:
Caterers often provide a composite supply that includes outdoor catering along with renting of premises (such as hotels, convention centers, clubs, pandals, etc.) specially arranged for organizing functions.
If this composite supply is provided by any person other than suppliers providing hotel accommodation at specified premises or suppliers located in specified premises, the applicable GST rate is 5%, and ITC is not available.
If the composite supply is provided by suppliers who offer hotel accommodation at specified premises or suppliers located in specified premises, the applicable GST rate is 18%, and ITC is available1.
Restaurant Services:
Restaurant services include the supply of food or other consumables by restaurants, eating joints, messes, and canteens.
The GST rate for restaurant services (whether for consumption on or away from the premises) located within the premises of a club, guest house, etc., is 18%23.
In summary:
Outdoor catering by non-hotel suppliers: 5% (no ITC)
Outdoor catering by hotel suppliers: 18% (with ITC)
Restaurant services: 18%
Your friend’s catering business falls under the outdoor catering category, and the applicable GST rate would be 18% if they provide services similar to those offered by hotels. However, if they are not associated with hotel accommodation, the rate would be 5%.
accountant
115 Points
Joined June 2016
Thanks for replay, we have issued invoice to corporate company only and we are not associated with any hotels.
we have issued invoice to corporate company with 18% but they want to notification or any document under gst act for clerity regarding our business are fall under 18%•
please help.