ITC on outdoor caterer supplying food in company under Factories Act, 1948

[NAUSHERAWAN SM]

Let me know whether ITC will be eligible of outdoor caterer supplying and serving foods and beverages in a company canteen for the employee registered under Factory Act, 1948.. Also let me know whether any purchases more than ₹ 5000/- for company pantry like tea, biscuits, cold drinks etc from unregistered party will attract GST in RCM.

AI Summary

ITC Not Available for Outdoor Caterer Supplying Food to Company Canteen Under Section 17(5) of GST Act A discussion on a forum addresses whether Input Tax Credit (ITC) is available for an outdoor caterer supplying food to a company canteen under the Factories Act, 1948. Participants clarify that food and beverages are excluded from ITC under section 17(5) of the GST Act. Purchases over 5000 from unregistered suppliers attract GST under the Reverse Charge Mechanism (RCM). It is noted that while certain expenses like mineral water may be eligible for ITC, food and beverage expenses generally are not. The discussion emphasizes the conditions under which ITC can be claimed for such supplies.