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Input on food provided to employees

07 February 2019

my client have a stone crusher and he have 40 employees and he providing food to employees which is supplied by some hotel. and the hotel gives input tax . can it be claimed by my client or what.

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10 Replies

Saravana kumar (Tax Consultant) (170 Points)
Replied 07 February 2019

No, Foods and bevarages not eligible ITC , unless if it is Obligatory in any law.

For Example , In Factories act if total employees exceeds 250, employeer need to arrange canteen facilities

prasad Nilugal ( GST Practitioner & Accounts ) (14183 Points)
Replied 07 February 2019

Section 17(5) (b) (i) as per CGST amendment act ITC 2018 not available for food & beverage

please confirm with others also

satish Motipalli (Student CA Final ) (119 Points)
Replied 07 February 2019

As per amendment act 2018, if it mandatory on the employer under any law. Then such employer is eligible for ITC.

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VIKAS SAINI (1157 Points)
Replied 07 February 2019

Satish ji itc is not allow on canteen facility provide to employees under sac

Vinod Babu (24191 Points)
Replied 08 February 2019

ITC not available on food and beverages as it is Blocked u/s 17(5) of CGST Act 2017

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 08 February 2019

No ITC available.......

chamarthi venkatesh (Student CA Articleship) (848 Points)
Replied 08 February 2019

ITC is available, if the employer charges the employees for the food and gives tax invoice to them.

17(5)(b)(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply.

only 17(5)(b)(iii) (rent-a-cab, life insurance and health insurance) speaks about obligation of Employer.