Goods and Services Tax

ITC of Canteen Exp.(Food & beverages) _in Factory

GST – Started By: – Prem Choudhary – Dated:- 8-3-2019 Last Replied Date:- 12-3-2019 – Dear Expert As per amendment in Section 17(5)(b) CGST Act, 2017 as amended by the CGST (Amendment) Act, 2018 w.e.f 1st February, 2019, allows input tax credit in respect of such goods or services or both, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. The canteen is obligatory in Factories Act 1948 therefore We can take Credit of Canteen bills of food and beverages exp. 1. if Canteen is given on contract then Credit of contractor bills can take credit 2. if maintained by Company self ,then ITC on material consumed in canteen can be take credit please advice if any contrary views. – Re

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s of notification no.13/2018 C.T(R) dated 26th July, 2018 – the rate of tax is 5% with a condition that input tax charged on goods and services used in supplying the service has not been taken. Further such supply would be treated as exempted supply for the purpose of proportionate reversal of ITC under Rule 42 of CGST Rules, 2017. Summary – If you are not recovering anything from employees (i.e. you don't have any outward canteen supplies) you are eligible for input tax credit under recent CSGT Amendment Act w.e.f. 01.02.2019. If you are recovering from employees then the ITC will be blocked through virtue of notification no.13/2018-C.T(R) dated 26th July 2018. – Reply By Prem Choudhary – The Reply = Sirs my query is 1. if Canteen is g

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