MLG Associates

MLG Associates
TB-11, Crown Plaza Mall, Sector 15A
Mathura Road,
Faridabad, Haryana, India 121007
ph: +91-9312608426
alt: 9311278884
skgupta@mlgassociates.org

GST ITC on the Food at the Exhibitions and Conferences

Our Note on the subject is as under :

The Governing section of the Disallowance in GST is Section 17(5).

Section 17(5) says. :

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection
(1) of section 18, input tax credit shall not be available in respect of the following,
namely:—

(a)…

(b) the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery

except where

an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

Thus,

The way out is to club the catering into the event management services

1. The Event Management company is giving the Association a composite supply of goods and services , so it will get the ITC on the Caterer’s bill. Zero cost and zero loss to him.

2. Exhibition organisers will get full ITC of the event management company bill, since it is not for food but for the exhibition ( or Conference) as a composite event. Zero cost and zero loss to Association.

Benefit of this

This is more tax efficient

There is no loss of GST anywhere in the chain.

And this is legally fair as per the configuration of the law.

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MLG Associates
TB-11, Crown Plaza Mall, Sector 15A
Mathura Road,
Faridabad, Haryana, India 121007
ph: +91-9312608426
alt: 9311278884
skgupta@mlgassociates.org