GST on Catering Services: Overview

Catering services play an important role in weddings, events, offices, and institutions. If you’re a catering business owner or hiring a caterer, understanding the gst on catering services is essential to avoid confusion over billing and taxation. This blog breaks down GST rates, conditions, and compliance in simple terms.

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    GST Rates

    Are Catering Services Taxable Under GST?

    Yes, catering is considered a supply of service under GST. Whether the catering is provided indoors, outdoors, at a venue, or through a mess or canteen, it is taxable.

    The applicable catering services gst rate depends on:

    • Where the service is provided
    • Who is receiving the service
    • Whether the input tax credit (ITC) is claimed

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    GST Rate on Catering Services

    Type of Catering Service GST Rate Input Tax Credit (ITC)
    Regular catering (with ITC) 18% Allowed
    Outdoor catering (without ITC) 5% Not allowed
    Catering under government contracts 5% or 18% Depends on conditions

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    GST on Outdoor Catering Services

    gst on outdoor catering services is charged at 5% GST without input tax credit, unless the catering is provided by a registered restaurant with the facility to claim ITC.

    Outdoor catering includes:

    • Wedding events
    • Corporate parties
    • Religious or cultural events
    • Off-site food arrangements

    If the caterer does not claim ITC, they must charge 5% GST.
    If they do claim ITC, they are required to charge 18% GST.

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    Catering Services in Schools, Colleges, and Offices

    • Educational institutions: Exempt when food is provided to students and staff as part of education
    • Office canteens: Usually taxed at 5% without ITC
    • Industrial mess facilities: Same as office canteens — 5% without ITC

    So, institutional meal contracts are not completely exempt unless specified by GST notifications.

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    Billing Example

    If a caterer charges ₹1,00,000 for an outdoor event:

    • At 5% GST: ₹5,000 GST → Total = ₹1,05,000
    • At 18% GST (with ITC): ₹18,000 GST → Total = ₹1,18,000

    Choosing the rate depends on the business model and the ability to claim Input Tax Credit.

    Registration & Compliance

    Catering service providers must:

    • Register under GST if annual turnover exceeds ₹20 lakh
    • Charge GST as per applicable rate
    • Issue GST-compliant invoices
    • File monthly returns (GSTR-1 and GSTR-3B)

    Conclusion

    Whether you’re hiring a caterer or running a catering business, knowing the catering services gst rate is crucial. For most casual or outdoor events, GST is 5% without ITC, but registered businesses claiming input credits must charge 18%.

    Understanding when and how GST applies helps with better pricing and compliance.

    Frequently Asked Questions (FAQs)

    • What is the standard GST on catering services?
      Usually 5% without ITC or 18% with ITC, depending on the billing method.
    • Is GST on outdoor catering services always 5%?
      Yes, if the service provider is not claiming ITC. If ITC is claimed, they must charge 18%.
    • What is the GST rate on catering services for government contracts?
      It can be either 5% or 18%, based on whether ITC is claimed and the contract type.
    • Is GST applicable for food served in school canteens?
      Food served as part of educational services is exempt. However, private food contractors may attract GST.
    • Can a caterer claim ITC?
      Only if they charge 18% GST on their invoice.
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