ITC ELEGIBILITY ON FOOD BILLS OF DIFFERENT TYPES.

[SAFETAB LIFESCIENCE]

Dear Experts,

Our company is in Pondicherry. Our staff submitting Food Bills consumed by them during their official visits to local and other states.

1. Local bills with CGST+SGST.

2. Other state bills with IGST

3. Other state bills with CGST+SGST

All the above 3 categories are eligible for ITC. ???? Our staff trip is purely official.

Further, we are providing Food to our Employees for which we are not collecting any amount from our Employees. The caterer is giving local bills with CGST+SGST. Shall we take ITC credit of this.

[SHIVKUMAR SHARMA]

 

Section 17 - Apportionment of tax and settlement of funds. - THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017

[Ganeshan Kalyani]

Food , outdoor catering service are eligible credit.

[RamKumar Lakkoju]

For this first bunch of questions,

1. Local bills with CGST+SGST- You are eligible to take ITC provided your company GST registration number is quoated on tax invoice subject to Section 17(5).

2. Other State bills with IGST- You are eligible to take ITC provided your company GST registration number is quoated on tax invoice subject to Section 17(5).

3. Other state bills with CGST+SGST- You are not eligible to take ITC presuming that you are not having GST registration in that other state. Since you cannot take CGST & SGST credit by quoting registration number supplier who is having different state GST registration number ssubject to Section 17(5).

[Alkesh Jani]

Sir, I think we have already discussed this issue at large.

[RamKumar Lakkoju]

Yes..there is lot of discussion on it, i ve just seen now. Food and beverages are in block ITC list.

AI Summary

ITC eligibility on food bills hinges on GSTIN on invoices and whether supplies are blocked; inter-state tax treatment differs.
Eligibility of Input Tax Credit on food bills turns on the nature and place of supply and invoice compliance. IGST or CGST plus SGST is eligible where the recipient's GST registration number is quoted on the tax invoice and statutory blocked credit and apportionment provisions are observed. Conversely, CGST and SGST charged by a supplier in another state to a recipient not registered there will not be creditable. Employer provided catering raises additional questions because food and beverages may be included among blocked credits.