sandeep (Accountant) (111 Points)
02 August 2019The company provides canteen service ( Food & Tea Coupon) to employees . Company collects GST from employees and company discharged the liability every month. For Canteen Service , company purchases food and Gas Cylinders which includes 5% , 12% and 18% GST.
My question is that can company claim ITC on such inward supply.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 August 2019
Anshul Jain
(Professional)
(190 Points)
Replied 02 August 2019
| Originally posted by : Pankaj Rawat | ||
 |
Yes if you are further charging 18% |  |
Sir,
Notification No. 47/2017-CT (Rate) provides that services supplied by way of supplying food in canteen attract 5% GST and supplier cannot avail ITC.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 August 2019
Anshul Jain
(Professional)
(190 Points)
Replied 02 August 2019
| Originally posted by : Pankaj Rawat | ||
|
kindly refer the amendment act 31 of 2018 being effective from 1/2/19 | |
Sir,
Please help me with the exact provision. Also, if you are referring to Section 17(5), it is not applicable in the present case. It will be applicable only when such a service provider is allowed to charge 18% GST. However, in the present case, the Company can only charge GST @ 5% as per above referred notification.
Thanks
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 August 2019
Anshul Jain
(Professional)
(190 Points)
Replied 03 August 2019
sandeep
(Accountant)
(111 Points)
Replied 03 August 2019
In our case it is not obligatory to provide the canteen service to employees under any law. also we are charging 5% GST on Canteen Service. So the conclusion is , we are not able to claim ITC on inward supply.
Thanks to both of you for help me out.
CAclubindia
