Reverse charge on hotel bills for employees

Antony Raj (Accountant) (81 Points)

12 April 2018  

Dear Experts,

We are the manufacturing company in Bangalore. We are buying foods to our employees from a small hotel, which is not registered with GST. We are paying monthly basis and average monthly payment will be about Rs. 50,000/- for a month (For 30 days consumption).

Now my problem is that, whether Reverse charge is applicable to us or no reverse charge since per day limit is not exceeded Rs.5000/-

If Reverse charge is applicable, what will be the rate and can avail the ITC on the same.

Kindly explain

Thanking you