GST Rate & HSN / SAC Code for Canteen in Factory

[Abhijeet Shinde]

Dear All ,

Company entered in to a contract with a caterer for supply of food in the factory. Only Premises is provided free of cost to caterer. All Material, kichen equipment, Gas, electricity and labour for cleaning by Caterer only. Company not recovers food cost from the employees throgh salary.

Kindly Confirm GST Rate & HSN / SAC Code for bill by caterer and please also confirm can company get input tax credit ?

AI Summary

Clarification on GST Rate for Caterer's Bill: 18% for AC Canteens, 12% for Non-AC; Input Tax Credit Restrictions Apply. A company contracted a caterer to provide food in its factory, offering only the premises free of charge. The company does not deduct food costs from employees' salaries. The discussion sought clarification on the applicable GST rate and HSN/SAC code for the caterer's bill and whether the company could claim input tax credit. It was noted that the GST rate is 18% for air-conditioned canteens and 12% for non-air-conditioned ones. Input tax credit is generally not available for food and beverages unless used for making an outward taxable supply of the same category.