Question16: Under the situation expressed, the recipient of catering service for providing free meals to their employees is eligible for ITC and can avail and utilized the credit for paying the taxes.

Answer: Sorry to say that you are ignoring Section 17(5) of CGST act which block the credit of services received from outdoor caterer  The definition of outdoor caterer is already shared .Now the relevant portion of the Act is reproduced below

Section 17: Apportionment of credit and blocked credits      (Relevant Rules 42 to 43 , Rule 38)

(1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business

(b) the following supply of goods or services or both:'

(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

(ii) membership of a club, health and fitness centre Hope this will make our point clear (Reply dt. 21/11/2017)