Tuesday 22 May 2018

Canteen services provided by outside vendors to attract 18% GST

The Gujarat Bench of the Authority of Advance Ruling (AAR) for the Goods and Services Tax (GST) has decided that organizations providing food and drinks to canteen of different associations are 'outdoor caterers' and the services would pull in an 18% GST.

The decision was conveyed by Gujarat AAR on an application documented by Rashmi Hospitality Services. The firm is occupied with providing food, drinks and different eatables at different spots of their clients having in-house flasks at their production lines.

The expert said the assessee provides services from other than its own premises to the beneficiary. Thus, the nature of administration gave by the candidate is that of an outdoor caterers service.

AAR said the candidate was giving support of the beneficiary and not to specialists/representatives of the beneficiary. Along these lines, the administrations were not in the idea of those given by an eatery, eating joints including chaos and container, and subsequently can't collect a 5% GST.

"AAR decides that an outside food provider regarding cooking services being given at premises of corporate containers would now be at risk to impose at a level rate of 18%, and not at a legitimized rate of 5%. This decision will undoubtedly expand the info cost for all foundations giving free suppers or dinners at financed costs to workers," Rajat Mohan, accomplice, AMRG, and Associates, said.

No comments:

Post a Comment