Canteen Services Under SAC Code 996333
Canteen services cover providing regular food and beverages in office canteens, factory canteens, school and college cafeterias and other institutional dining setups. Operators supply meals, snacks and drinks on a daily basis to employees, students or members. Under GST, these canteen and cafeteria services are classified under SAC 996333. This SAC code and its GST rate decide how much GST is charged on canteen bills. This supports daily meals and snacks for staff, workers and students.
Canteen Services GST Rate for SAC Code 996333
Canteen services under SAC 996333 are treated as restaurant and catering services under GST. Different contract models with employers or institutions sometimes led to doubt about the right rate and taxable value for canteen bills.
After the September 2025 rationalisation, most standard restaurant and catering services under these codes generally fall in the 5 percent slab without input tax credit where they qualify as stand alone restaurant style services. Certain event or input intensive catering models can attract 18 percent with input tax credit based on the latest rules and notifications.
The table below explains the current GST rate applicable to SAC code 996333 for typical services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996333 | Services provided in Canteen and other similar establishments | 18% with ITC | 18% with ITC | Canteen / mess style catering is generally taxable at 18% with ITC. No “from → to” entry for this SAC in the 56th Council Annexure, so earlier rate continues. |
When issuing invoices for services under this SAC code, restaurants and caterers should clearly show the taxable value of food and service, the GST rate and the tax amount so that customers understand the bill. The same SAC code and rate treatment should be used in GSTR 1 and GSTR 3B for outward supplies to keep records clean and consistent.
Explore Other SAC Codes Under 9963
This SAC code is part of the accommodation, food and beverage services group 9963, which covers hotel stays, hostels and PGs, student residences, restaurant services, catering services and other related hospitality activities. Each six digit SAC within this group is meant to capture a specific type of stay or food service so that GST reporting becomes more accurate.
Below are the major related six-digit SAC codes under parent 9963
In day to day use, businesses should pick the SAC code that best matches the main nature of their hospitality service. If the focus is more on accommodation, restaurant food or event catering, another SAC within 9963 may be more suitable. Correct SAC selection and GST rate application help avoid future disputes, keep the input tax credit position clear and make GST records easier to explain during audits or departmental checks.
Conclusion
Canteen services under SAC 996333 cover daily food and beverage supplies in office, factory and institutional canteens. These services now broadly follow the 5 percent GST slab without input tax credit for simple meal supplies and 18 percent with input tax credit for certain contract catering models as per the latest norms. Employers and canteen operators should structure agreements clearly, apply the correct GST rate on staff or institution bills and keep proper disclosure in GST returns. For subsidised or partly recovered canteen charges, it is wise to review the latest GST guidance.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What does SAC code 996333 cover in GST?
SAC 996333 covers services provided in canteens and similar establishments. This includes staff canteens in offices or factories, institutional cafeterias in colleges or hospitals and other fixed place food counters mainly serving a defined group of people.
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Does SAC 996333 include canteen and cafeteria services for offices and institutions?
Yes. Company run staff canteens, outsourced office cafeterias and institutional messes in colleges or hostels usually fall under SAC 996333 when they provide regular prepared meals or snacks to employees, students or residents.
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What is the GST rate on canteen services under SAC 996333?
Canteen services are generally taxed in the 5% without ITC or 18% with ITC range, depending on how they are structured and latest notifications. Many employee subsidised canteens provided by employers may be treated as supplies to employees at concessional rates.
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Should company run staff canteens use SAC 996333 on invoices?
Yes. Where canteen charges are recovered from employees or billed to the company by an outside caterer, SAC 996333 should be mentioned to show it is canteen style food service, not restaurant dining for the general public.
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Is ITC available on GST paid for SAC 996333 services?
Input tax credit treatment can be tricky. Employers providing canteen services as a legal requirement may claim ITC in some cases, while voluntary facilities can face restrictions. Caterers charging 18% with ITC can claim credit on their own eligible inputs.