Composite Tax Dealer - Canteen

[Praveen Nair]

Dear Experts,

Kindly suggest whether Canteen Services Provider, an outside agency providing exclusive service to a factory - providing food to the employees, be registered as a Composite Tax Dealer?

Currently he is registered as a Outdoor Catering Service provider and charges GST at applicable rate.

Thanks

Pravin Nair

AI Summary

Composition scheme eligibility for outdoor catering may be available depending on service classification and turnover threshold.
Whether an outside agency supplying food exclusively to a factory qualifies as a composition tax dealer is disputed: one view denies composition eligibility for outdoor catering on the basis that such supplies are not made from the registered place of business and align with restaurant-type supplies; the contrasting view notes no explicit Schedule prohibition and maintains outdoor caterers may opt for composition provided they satisfy the scheme's turnover and other statutory eligibility conditions.