Whether input tax credit will be available on Purchase of Canteen Equipment purchased by a manufacturer for the purpose of using those canteen equipment at the employee canteen in factory premise? Please specify the rule and section.

Reply— As per notification 13/2018-Central Tax (Rate) dated 26.07.2018, GST rate is 5% without input tax credit on supply of food or any other article for human consumption or any drink 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.

Therefore, ITC is not available.