ITC on canteen

[Asked by Guest]

Dear sir,

we are manufacturing co. and having canteen facility also in co. premises.

third party is cooking here and raise invoice with GST to us., we are paying him with GST.

however company is charging nominal fee from employees.

in this scenario, ITC is eligible or not?

AI Summary

Input tax credit for canteen supplies is constrained by catering exclusion, valuation rules, and GST rate/notification effects.
Whether a manufacturer may claim input tax credit on GST paid to a third party canteen contractor hinges on the statutory exclusion of food and catering from ITC, the exception permitting credit where inward supplies are used to make outward supplies of the same category, and valuation rules for related party supplies; administrative instruments such as AAR decisions and notifications fixing GST rates further affect eligibility and reporting obligations including potential reverse charge or fair market valuation implications.