Hi All,
We are manufacturer of Wiring Harness of Motor Vehicle. Chapter heading 85443000 Our total employee including contractual are 1000. Hence canteen facility to the workers is the statutory requirement under Section 46, of the Factories Act, 1956.
Caterer is third party who is preparing foods at his location and serves in our premises. Kindly confim on GST applicablity on Contract Employee Canteen Deduction.
Regard Bhushan
GST on Canteen Services: 18% Tax Rate and Full Input Tax Credit for Motor Vehicle Wiring Harness Manufacturer A manufacturer of wiring harnesses for motor vehicles inquires about the applicability of GST on deductions for canteen services provided to their 1,000 employees, including contractual staff. A third-party caterer prepares and serves food on the company's premises. A respondent clarifies that the supply of food is considered a business under the CGST Act, 2017, with a tax rate of 18% and full input tax credit available. Another participant, residing in a hostel, seeks clarification on GST applicability for food services provided by a third-party caterer in their hostel. (AI Summary)
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