Catering service or Restaurant Service

[ROHIT GOEL]

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%.

AI Summary

Outdoor catering service classification leads to standard GST treatment under notification, not concessional restaurant rate.
Services by a food contractor supplying food to a club based on customers' orders are to be classified by reference to GST notification entries under heading 9963; Gujarat AAR has held comparable industrial canteen supplies to be outdoor catering taxable at the standard GST rate, and reliance on precedent supports treating such contractor provided canteen/catering services as outdoor catering rather than concessional restaurant services. Check FBO/FSSAI licensing and invoice/tax treatment accordingly.