Catering Services

November 5, 2016   admin  GST Wise Implications
Catering Services
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  • Impact on Output Pricing

  • FOC impacts to be factored in supply
  • Inputs mostly (fruits/ vegetables/ basic food) may be exempt while output taxable. No more abatements
  • Exemption forseen for factory canteens, schools, UN, SEZ only.

  • Impact on Supply Chain Management

  • Inter branch supply of goods / services made taxable
  • No more loss of CST in inter state transfers
  • No more statutory forms

  • Impact On Place of Supply

  • Place of Supply shall usually be the location of performance. Any back to back sub contracts shall have bearing on overall credit availability.

  • Impact on Registrations

  • Separate registrations in each state
  • No more composition choice state wise
  • Monthly compliance of payment and return in each state.

  • Impact on Cash Flow

  • Advances made taxable
  • Vendor / Customer discounts to be examined for tax impacts
  • More caution in case of provisioning by customers

  • Input Tax Credit

  • Credit availability subjected to online filing by supplier
  • Credit of State GST restricted in certain cases
  • Credit of your output GST of Catering not available to purchaser when purchased for employees

 

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