GST Applicablity on Contract Employee Canteen & Transport Deduction

[Bhushan Velhal]

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

AI Summary

Supply of food services taxable at standard rate; employer-provided canteen by third-party attracts GST and input tax credit available
Supply of food by a third-party caterer to an employer, employee canteen, or hostel is a taxable supply of services; the caterer is the supplier and the employer/hostel or inmates are the recipient, and such food supplies are subject to GST at the standard rate with entitlement to full input tax credit.