GST on Outdoor catering

[Ravikumar Doddi]

Dear sir,

Applicant supplying food on a daily basis in a Govt Cancer hospital on behalf of a corporate, what is the rate of tax w.e.f. 01-10-2019 previously they used to charge@18%. Corporate company is paying, hospital authorities are not paying the amounts. There is no kitchen in the hospital, applicant has his own kitchen separately out side the hospital i.e, at place of business. In the definition part of 'outdoor catering' (xxxiii) in Notification No 20/2019 CTR dt; 30-9-2019 no where it is covered these type of supply, entry No (iv) is clear. kindly clarify

[Rajagopalan Ranganathan]

Sir,

As per Explanation xxxii inserted in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019 'Restaurant service' means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied.

Therefore as per Sl. No. 7 (ii) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019 the rate of tax is 2.5% subject to the condition that credit of input tax charged on goods and services used in supplying the service has not been taken.

[KASTURI SETHI]

I support the views of Sh.Ranganathan, Sir.

[Ravikumar Doddi]

Thnak you sir

AI Summary

Restaurant service classification applies, attracting reduced GST rate where input tax credit is not availed by caterers. Supply of cooked food by an external caterer to a hospital for consumption on or away from the premises qualifies as Restaurant service. Such supplies attract a reduced GST rate of 2.5% provided the supplier has not taken input tax credit on goods and services used in supplying the service.