Question11: Is GST Input is available for Canteen Service used by the employee of factory.

for Example XYZ Ltd giving contract to a person Ram for setup a canteen in factory and paid Rs 100 per Plate for 2000 Employee in factory. by the XYZ Ltd to Ram. Mr Ram raised invoice to XYZ Ltd. for canteen Charges Rs 200000 and Charged GST @ 12% RS 24000. Is Input of IGST Rs 24000 available to XYZ Ltd or Not. Negative List of Input only Outdoor catering input is not available. is Input on Indoor catering service is available.

Answer: Outdoor caterer' means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. So the catering service in your factory when provided by outsider is out door catering and credit is not allowed on it (Reply dt. 21/11/2017)