Canteen Supplies to SEZ unit employees

[Ravikumar Doddi]

Dear sir,

Kindly clarify as to GST Head of tax, dealer running a canteen in a SEZ unit, for the supplies done to employees as per the agreement they are collecting IGST from the SEZ Unit , often employees will also come and eat in the same canteen by paying their personal money to the canteen, Which tax we have to collect and pay either local tax(CGST+SGST) or IGST.

AI Summary

Inter state supply IGST applies to canteen supplies billed to SEZ units; employee cash purchases may attract local GST.
Supplies billed to an SEZ unit for consumption by its employees, including cuppage billing or invoiced ingredient supplies, are treated as inter state supplies for IGST purposes and not as zero rated under the SEZ zero rating provision; IGST is ordinarily chargeable. By contrast, direct sales to employees paid from personal funds may be viewed as intra state supplies subject to CGST+SGST, though views differ and the practical distinction hinges on whether consideration is received from the SEZ unit or from individual employees.