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GST on Supply of food in canteens of office, factory, hospital, college, industrial unit
Supply of food in canteens of office, factory, hospital, college, industrial unit etc on contractual basis excepting that supply is not event based or on specific occasions, constitute supply of service in terms of amended Notification No.13/2018-Central Tax(Rate) Dated .26.7.18 and is taxable at the rate of 5%. The supplier in such case is not eligible for the input tax credit as per the condition stipulated therein. As Per Serial No 7(i) of notification No. 13/2018-CT (Rate).
Examples Of Above Type Of Services could be broadly as under:-
1. Canteen services provided in organizations like Reliance, TCS, etc., wherein the food is cooked in the premises of Company and “Sold” to the employees of the said organization at an agreed price mutually agreed upon, it is done on a regular daily basis.
2. Provide services of serving food – Breakfast + lunch & Dinner and any other food requirements from a Mess/Dining Hall to the trainees of the Training institution of banking such as Andhra Bank Staff College,RBI Training institute etc., Even here the food is prepared and sold/served to the trainees in the premises, where the trainees attend a residential programme and they are rooms for stay in the premises for the trainees.
3. Operates student mess for students in Engineering colleges(Higher Education where food is prepared and served in the hostel premises.
4. In the Educational Institutions- the applicant in some institutions also operate the canteen for the day scholar students and staff wherein food is prepared in the canteen and sold for consumption by the students/staff. In the so called student/staff canteen, certain bought out items like lce Creams/Soft Drinks/Biscuit packets etc wherein the Maximum Retail price is printed on the item is also sold for consumption by the students/staff.
In all the above 5 Circumstances the GST will be charged @5% without Input Tax Credit