credit eligible for outdoor catering

[Ramakrishnan Seshadri]

Dear Sir,

We are manufactured of automobile components.

We have canteen facility and our caterers supply food.

He is charging gst in his bill.

Whether we can take gst set off on his bills.

Thanks & Regards

S.Ramakrishnan

[Himansu Sekhar]

Under Sec 17(5) the credit on food items not allowable

[KASTURI SETHI]

I support the views of Sh.Himanshu Sha, an expert. I add that otherwise also canteen facility is not in course or furtherance of business of automobile.

[Himansu Sekhar]

Thank you very much.

[Kishan Barai]

It is advisable that you distribute meal pass to your employee like Sodexo/Ticket and your canteen must accept that, it could help overall for your company in the view point of taxation.

AI Summary

Input tax credit on food services disallowed where supplies are for employee welfare, impacting GST credit claims.
Input tax credit on GST charged by an external caterer for employer-provided meals is treated as ineligible input tax credit where such food supplies serve employee welfare and are not in the course or furtherance of the taxable business. A suggested commercial measure is to provide meal vouchers or passes accepted by the canteen, which may affect the tax treatment subject to GST rules and the specific arrangement.