GST RATE AND SAC CODE FOR FOOD/MEAL SUPPLY

[Bhavesh Sharma]

Hello Everyone,

I Want Clarification for following query:

PARTY A (BAKERS & CATERERS BUSINESS)

PARTY B (COMPANY)

Party A Only Supplies Meals (3 Times Lunch a day daily and it pays the bill in the end of month instead at same time) like food delivering done by hotels to Party B. So in this case what will be the GST Rate and SAC Code. and whether it will fall under contract or not.

I am taking in SAC 996333

Please clarify ...

[ANITA BHADRA]

GST Rate will be 18% .

Recently Gujrat AAR said - Food delivery outside hotel premises will attract GST at the rate of 18% and not 5% .

It will not fall under Contract as there is no such contractual agreement between the partys

[YAGAY andSUN]

SAC: - 996337 Other contract food services
This service code includes food preparation and/or supply services based on contractual arrangements with the customer, at institutional, governmental, commercial or industrial location/s specified by the customer other than for transportation companies, on an ongoing basis; food service concession services, i.e. the provision of operating services by operators of eating facilities such as canteens and cafeterias

[Rajagopalan Ranganathan]

sir,

Please refer to Sl. No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as amended for the rate and conditions for the rates prescribed.

[YAGAY andSUN]

Also refer explanatory notes on Service Under GST.

AI Summary

GST on meal delivery: classification under catering contract food services affects applicable tax treatment and rate. Supply of daily meals to a corporate customer is treated as catering/contract food service and should be classified under SAC 996337 where provided on an ongoing basis at a customer-specified location; the service attracts the higher GST rate indicated for food delivered outside hotel premises and readers are directed to Notification No. 11/2017-Central Tax (Rate) and explanatory notes for the specific rate conditions and the role of contractual arrangements in classification.