DEAR SIR/MADAM, GREETINGS OF THE DAY!!! FROM 01.10.2019 GST RATE ON OUTDOOR CATERING SERVICES CHANGED FROM 18% (WITH ITC) TO 5% (WITHOUT ITC). QUERY 1: WHAT ABOUT GST ITC TAKEN ON CAPITAL GOODS PRIOR TO 01.10.2019. WHETHER TO REVERSE ITC OF CAPITAL GOODS TAKEN BEFORE 01.10.2019 OR ANY OTHER TREATMENT. PLEASE CLARIFY. QUERY 2:ONE OF MY CLIENT PROVIDING CANTEEN SERVICES (BREAKFAST,LUNCH,DINNER) IN MANY INDUSTRIES. WHAT IS GST TAX RATE AND GST ITC APPLICABLE TO IT FROM 01.10.2019 ? WITH BEST REGARDS

Reply— 

Since the notification no. 20/2019 (central tax rate) is applicable w.e.f. the 1st day of October, 2019, there is no requirement to reverse input tax credit taken before such date.

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.