Rate of tax on tea & coffee

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

What Is the rate of tax for tea and coffee supply by the vendor to our employees regularly. And if they don't charge, then is there any RCM to be paid? And what rate.

Thanks in advance.

[KASTURI SETHI]

Has vendor crossed threshold exemption of Rd.20 lakhs ? You are not responsible for vendor' s GST liability. No RCM is applicable here.

[Himansu Sekhar]

If the vendor is unregistered liability is upon you subject to the purchase of more than rs 5000/- per day

[KASTURI SETHI]

If vendor is unregistered because of threshold exemption limit and no inter-State supply is involved, no liability on receiver of supply of service.

[KASTURI SETHI]

If the supply of goods or services are exempted by way of threshold exemption or otherwise, the "sword" of purchase of ₹ 5000/- per day from unregistered person ( and also of RCM ) does not hang on registered person.

AI Summary

Reverse charge applies for supplies from unregistered vendors when a daily purchase threshold is exceeded; exempt supplies avoid RCM. For supplies of tea and coffee to employees, the vendor is liable to charge GST if registered; no reverse charge arises. If the vendor is unregistered, reverse charge falls on the recipient when purchases from that unregistered supplier exceed the daily purchase threshold. If the vendor is unregistered only due to threshold exemption and no inter state supply is involved, the recipient is not liable. Exempt supplies do not attract reverse charge.