Contract Food Under SAC Code 996337

Contract food services cover running kitchens and providing meals under long term contracts for offices, factories, schools, hospitals and other institutions. Service providers manage menu planning, cooking, serving and daily operations for a fixed fee or per plate rate. Under GST, such contract catering services are classified under SAC 996337. This SAC code and its GST rate decide how much GST is charged on these food service contracts. This helps institutions outsource kitchen operations while maintaining regular meal quality.

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996337 SAC Code GST Rate

Review old and new GST rates for Contract Food under 996337 SAC Code.

Contract food services under SAC 996337 are treated as catering and contract catering services under GST. In the initial years, various ways of pricing meals, subsidies and service fees created complexity in finding the correct GST treatment for such contracts.

After the September 2025 rationalisation, most standard catering, contract food and beverage services under these codes generally fall in the 5 percent slab without input tax credit where they operate like regular restaurant or catering services. In some structured or input intensive models, 18 percent with input tax credit can apply as per the latest notifications.

The table below explains the current GST rate applicable to SAC code 996337 for typical services.

SAC Code

996337

Description

Other contract food services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Residual contract catering bucket. Standard 18% with ITC; not targeted for change in the 56th Council Annexure.

While issuing invoices under this SAC code, service providers should clearly show the taxable value of food and service charges, the GST rate and the tax amount so that clients understand the bill clearly. The same SAC code and rate pattern should be used in GSTR 1 and GSTR 3B for outward supplies to keep GST records consistent and easy to justify.

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Explore More SAC Codes Under 9963

Practical Classification Guidance

In daily use, businesses should select the SAC code that best matches the main nature of their service. If the focus is more on room accommodation, restaurant food, large event catering or contract meal supply, 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 justify during audits or departmental checks.

Conclusion

Contract food services under SAC 996337 cover long term catering contracts for offices, factories, institutions and hospitals. These services generally attract 5 percent GST without input tax credit for standard meal supply models and 18 percent with input tax credit for certain contract catering structures. Service providers and clients should study their contract terms, apply the proper GST rate on each bill and keep the same classification in GST returns. For subsidised or partially recovered meal charges, it is wise to review the latest GST notifications and consult a tax expert.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996337 and GST compliance.

What does SAC code 996337 cover in GST?

SAC 996337 covers other contract food services. It includes long term catering contracts for corporates, schools, colleges, factories, hospitals and similar institutions where food is supplied regularly as per an agreement.

Does SAC 996337 include contract catering for corporates, schools and institutions?

Yes. When a caterer runs a mess or dining facility under contract for a company or institute, providing daily meals or snacks to their staff or students, the service is classified under SAC 996337.

What is the GST rate on contract food services under SAC 996337?

Contract food services usually fall within notified food service slabs, typically 5% without ITC or 18% with ITC. The exact rate depends on contract terms, whether premises are owned by client or caterer and relevant notifications.

Should long term catering contracts use SAC 996337 on invoices?

Yes. Invoices raised under one year or multi year mess or canteen contracts should mention SAC 996337. This helps distinguish these supplies from casual event catering or restaurant style services billed under other SAC codes.

Is ITC available on GST paid for SAC 996337 services?

Caterers charging 18% with ITC can claim credit on food ingredients, kitchen equipment and other eligible inputs. Clients receiving such services must check whether they can treat the cost as business input, since some welfare related catering has specific ITC limits.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.