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Issue ID: 112569
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Rate of tax on tea & coffee

Date 09 Aug 2017
Replies 4 Replies
Views 4414 Views
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. (AI Summary)

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.

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