Outdoor catering classification applies when canteen services are run at recipient premises, regardless of who consumes the food.

A canteen arrangement at the recipient's premises, where the recipient fixed the menu and paid consideration for meals, snacks and tea, was treated as outdoor catering because the service was supplied by a caterer from a place other than its own premises. The fact that the food was ultimately consumed by the recipient's employees did not change the tax classification, as the nature of the supply depends on the service rendered to the recipient. The mess or canteen clarification was held inapplicable on these facts, and the supply was classified under outdoor catering rather than the lower-rate restaurant or mess entry, attracting GST at 18%.

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Issues: Whether the applicant's canteen operations for the recipient's employees were classifiable as outdoor catering or as canteen service, and the consequential rate of GST applicable.

Analysis: The agreement showed that the applicant was engaged to run the canteen at the recipient's premises, with the recipient fixing the menu and paying agreed consideration for meals, snacks and tea. On this factual basis, the service was supplied by a caterer at a place other than its own premises and was therefore in the nature of outdoor catering. The fact that the food was consumed by the recipient's employees did not alter the character of the supply, because taxability depends on the service provided to the recipient, not on who ultimately consumes the food. The clarification for mess or canteen facilities was held inapplicable on these facts. The service was accordingly held to fall under the entry for outdoor catering and not under the lower-rate restaurant or mess entry.

Conclusion: The supply was held to be outdoor catering and GST was applicable at 18%.

Ratio Decidendi: Where a caterer is engaged to run a canteen at the recipient's premises for consideration, the supply is outdoor catering if the service is provided to the recipient from a place other than the caterer's own premises, and the identity of the ultimate consumer does not determine the tax classification.

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