One of our client has been appointed as a food contractor by a club. Supply by our client to a club will be based on actual orders placed by customers of club. Payments from customers will be charged by a club and GST @ 5% has been charged in invoice considering it as a restaurant services.
Our client will raise invoice to club at the end of month for the supplies made by him.
Issue that arises is whether services provided by our client are catering service @18% or restaurant services @5%.
Food Contractor's Service Deemed Outdoor Catering, Taxable at 18% GST, per Prior Rashmi Hospitality Ruling. A client, acting as a food contractor for a club, faces a GST classification issue on whether their service is categorized as catering at 18% or restaurant services at 5%. Various experts in a discussion forum conclude that the service is outdoor catering, taxable at 18% under GST. The Gujarat Authority for Advance Ruling supports this, referencing a similar case involving Rashmi Hospitality Services, where services were classified under outdoor catering, attracting an 18% GST rate. The discussion emphasizes the importance of proper classification in compliance with relevant GST notifications and rulings. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
