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A Proprietor Firm  Doing Catering Business i.e., Canteen Providing Foods, Cold Drinks, Tea, Coffee, Etc to Workers of Private Limited. Prop Firm Charging GST @ 18% From July 2017 to June 2018. But Circular 13/2018 comes for Charging GST @ 5% without ITC.

Can we charge 5% or 18% now?

Reply

Previously supplying food in outdoor catering is covered under 18% GST rate, but after issue of notification 13/2018-Central Tax (Rate) dated 26.07.2018  rate of GST has been reduced to 5%. The following explanation is inserted with said notification.

This item includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional.

Thus when a Proprietor Firm providing supply of food or any other article for human consumption or any drink at industrial unit or at office in contractual arrangement, it will cover under 5% GST rate without ITC.

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