Catering services in India are subject to Goods and Services Tax (GST), which is a consumption-based tax levied on the supply of goods and services. The GST rate for catering services is 5% without input tax credit (ITC) and 18% with ITC. The HSN/SAC code for catering services is 9963.
The effective date of the GST rate for catering services is July 1, 2017. The brief description of the goods/services is "services provided by caterers in relation to preparation and supply of food and beverages."
| HSN/SAC Code | Goods/Services | GST Rate (%) | Effective Date |
|---|---|---|---|
| 9963 | Catering services | 5% (without ITC) | July 1, 2017 |
| 9963 | Catering services | 18% (with ITC) | July 1, 2017 |
The GST rate for catering services is 5% without ITC and 18% with ITC. The tax breakdown is as follows:
For 5% GST rate (without ITC):
For 18% GST rate (with ITC):
Catering service providers can opt for either the composition scheme or the regular scheme. The composition scheme is available for suppliers of goods and services whose aggregate turnover in the preceding financial year did not exceed ₹1.5 crore. The composition rate for catering services is 5%.
The regular scheme is available for all suppliers of goods and services. Under the regular scheme, the GST rate for catering services is 18% with ITC.
Prior to the introduction of GST, catering services were subject to service tax at the rate of 15%. The service tax was levied on the gross amount charged by the caterer for the services provided.
Under the pre-GST tax regime, the tax breakdown for catering services was as follows:
The total tax incidence under the pre-GST tax regime was 15% + 0.5% + 0.5% = 16%.
To calculate the total GST amount for catering services, you can use the following calculator widget:
Base price:
GST rate (%): 5% (without ITC) 18% (with ITC)
Total GST amount:
function calculateGst() { var basePrice = document.getElementById("base-price").value; var gstRate = document.getElementById("gst-rate").value; var totalGst = (basePrice * gstRate) / 100; document.getElementById("total-gst").value = totalGst; }Q: What is the input tax credit (ITC) available for catering services?
A: The ITC available for catering services is 18% of the GST paid on the inputs used in the provision of services.
Q: What are the compliance requirements for catering service providers under GST?
A: The compliance requirements for catering service providers under GST include registration, invoicing, payment of tax, and filing of returns.
Q: What are the common billing mistakes associated with catering services under GST?
A: The common billing mistakes associated with catering services under GST include incorrect GST rate, incorrect HSN/SAC code, and incorrect invoicing.
To avoid common billing mistakes associated with catering services under GST, it is essential to ensure the following:
By following these compliance tips, catering service providers can avoid common billing mistakes and ensure compliance with the GST regulations.
5%
9963
July 1, 2017
18%
Consumption-based tax
