Raising of GST Tax Invoice for sharing of Canteen expenses

[CABIJENDERKUMAR BANSAL]

Dear Friends!

Greetings of the day!

In our factories, we are having provisions of food supplies from Food vendor. In one unit through supplies of tifin and in one unit, we are having provision of canteen where food supplier bring his food and serves to employees.

Food supplier raises the Invoice with GST for which we did not take any GST credit because of impact of Sec 17 (5) of CGST Act.

We are having on roll employees as well as workers hired from Manpower contractor. We recover the food expenses from on roll employees by deducting from their salary on concessional rates. We recover the food expenses from Manpower contractor bills by deducting their dues on concessional rates for workers hired from Manpower contractor. We did not give any GST impact while we recover these food cost.

Hereby I request you all to please give your respective opinions over following queries:--

1. As a industry practice, we notice many GST registered dealers issuing Tax Invoices with GST to manpower contractor for sharing food expenses with them and also taking GST credit in terms of proviso to section 17 (5) of CGSt Act for same amount (in light of providing same service of canteen/food supplies). Our food supplier charged 18% of GST vide SAC 996333.

Whether this practice of issuing Invoice and taking GST credit is correct.

2. In same way, whether we can issue combined invoice to employees and charge GST and also can take GST credit of GST levied by Food supplier.

3. In the same way, we are recovering 'Transportation expenses' on concessional rates from employees and deducting the same from their salaries. Whether we need to issue GST Tax invoice for this and adjust the GST liability with the GST credit on supplies of conveyances.

Would request all to please give your valuable opinion.

Thanks in anticipation of having respective opinions.

Regards!

Shrey Khanna

AI Summary

Company Seeks Guidance on GST Practices for Canteen and Transport Expenses; Debates on GST Credit for Food Supplies A company is seeking guidance on the correct GST practices related to canteen and transportation expenses. They provide food to employees and contractors, recovering costs through salary deductions without GST impact. They question if they should issue GST invoices for these recoveries and if GST credit can be claimed. Responses suggest issuing invoices for the subsidized amounts and paying GST on deemed services. However, there is debate on whether GST credit can be claimed for food supplies, with some advising that credit is not available, while others suggest it depends on the GST rate charged.