Canteen Recovery -GST Payable from Year 17-18 /18-19/19-20 & up to date- Payment Mode -Guidance request

[venkataraman swaminathan]

Dear Sir

Good Morning

We are coming under factories act & we are providing food to our Employees and also to our contract workers. Food received from outside from a Outdoor catering service provider canteen.

In this connection , we have not paid the GST payable on the cost recovery done from our (1) employees @ concessional rate & (2) from our man power contractors from the year 17-18 to till date and we have now decided to pay the GST payable /GST liability along with Interest also in Nov 20 from the year 17-18 to till date year wise figures.

Now for payment of GST liability we need guidance for the following .

1 ) for recovery done from our Employees can we raise Tax Invoice as regular payable routing

2) for recovery done from our Man Power contractors , can we issue our GST tax invoice to the respective man power contractors .(year wise )

3) (OR) the entire amount of GST payable /GST liability to be paid under DRC 03 year wise

We need guidance on the above because , there is no clarity for payment of this type of GST payable pending from 17-18 /18-19/ 19-20 / & 20-21 year...

Request suitable guidance on the above

Thanking you

V Swaminathan

[KASTURI SETHI]

Pat tax along with interest through DRC-03 and avoid penalty. Although issuance of invoice is very late, yet it has to be issued year-wise. Read Section 73 (5) & (6) and Section 74 (5) & (6) of CGST Act.

[KASTURI SETHI]

Read, "Pay" instead of 'pat'.

[KASTURI SETHI]

No benefit of related person under Schedule-I is allowed regarding recovery from employee. If part payment is charged from employee, then such amount is taxable under Section 9 of CGST Act. Also see the difference between sub-sections of Sections 73 and 74.

AI Summary

GST liability: pay past canteen recoveries with interest via DRC 03 and issue retrospective tax invoices year wise. Outstanding GST on canteen recoveries from employees and contractors for past years must be regularised year wise by issuing retrospective tax invoices and remitting tax with interest through DRC 03; employee recoveries are taxable under Section 9 and cannot be treated as related person non supplies under Schedule I.