TaxTMI 
TaxTMI 
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.
ITC on outdoor caterer supplying food in company under Factories Act, 1948
11 Aug 2017 
4 Replies 
1889 Views Asked by
Input Tax Credit exclusion for food and beverages means catering supplies to company canteens are not eligible under GST.
Food and beverage supplies to a company canteen are excluded from Input Tax Credit, so ITC is generally unavailable; when supplied by an unregistered person, the recipient may be liable under the Reverse Charge Mechanism to pay GST. Items like mineral water may be treated differently and can be eligible for ITC when GST is charged. ITC availability also depends on whether the supply is in the course or furtherance of business and the registration status of supplier and recipient. (AI Summary)
Food and beverage supplies to a company canteen are excluded from Input Tax Credit, so ITC is generally unavailable; when supplied by an unregistered person, the recipient may be liable under the Reverse Charge Mechanism to pay GST. Items like mineral water may be treated differently and can be eligible for ITC when GST is charged. ITC availability also depends on whether the supply is in the course or furtherance of business and the registration status of supplier and recipient. (AI Summary)