INPUT CREDIT IN CASE OF CATERING SERVICES PROVIDED IN THE PREMISES OF ENGG COLLEGE

[Sanjeev Agrawal]

X IS PROVIDING CATERING SERVICES IN THE PREMISES OF AN ENGG COLLEGE ,PAYING 5% GST ON SUPPLIES AND CLAIMING ITC ON INPUT SUPPLIES ,IS THIS CLAIM CORRECT..PL CLARIFY WITH REFERENCE TO LEGAL PROVISIONS.

[KASTURI SETHI]

Pl. go through this circular and corrigendum.

Corrigendum to Circular No. 28/2/2018-GST, dated 8-1-2018

M.F. (D.R.) Corrigendum F. No. 354/03/2018, dated 18-1-2018

 

[YAGAY andSUN]

We duly support the views of Kasturi Sir that if Rate is 5% on canteen services to an education institute then ITC on goods and services used in providing of such services will not be available.

[CSSANJAY MALHOTRA]

Circular No 28 has been withdrawn vide Central tax circular 50/2018 dated 31.07.18 Presently the Central Tax notification No 20/2019 dated 30.09.19 is in place which upheld the views of Sh Kasturi ji.

AI Summary

Input tax credit denial on campus catering services taxed at concessional GST rate restricts ITC eligibility. Where catering services supplied within an educational institution premises are taxable at the concessional GST rate, input tax credit on goods and services used to provide those canteen/catering services is not available; initial Circular No.28 and corrigendum addressed this, the circular was later withdrawn, and a subsequent notification/central tax position reaffirmed restriction on ITC for such supplies.