Catering services and banquet facilities are in general provided by all the big hotels and posh lodgings. Basically it comprises of supply of nourishment and supply of different administrations i.e., leasing the lobby, serving, mood, and so on. Café is additionally built inside the hotels. And that includes the supply of foods and Supply of different other facilities such as Catering, climate, and so on.
However, there may be a business entity separately engaged in a catering or Banquet service to the customers.
In case of a Banquet, renting a hall for an event could be the fundamental component. In some cases there could be just a case where space is given on rent and food could be obtained from somewhere else.) Yet there can never be a scenario where just-food is in service quote for any feast or other occasions, just as in café, where only the supply of food is the primary component.
Whatever be the case, the hotelier or the caterer must have a GST registration, and his business is all subject of the laws of GST,
1. Outdoor catering service:
An open-air caterer refers a caterer who is engaged in giving services in connection with catering at a place other than his very own place, yet arranging for a place booked by the organisers by way of rent or otherwise by the person receiving such services, i.e. organiser.
2. GST rate for Outdoor Catering:-
Supply of Food/drinks in open-air catering is subject to the fixed GST Rate of 18 %
3. Whether Input Tax Credit available:-
Yes, Full Input Tax Credit of GST paid can be availed by the recipient of such Outdoor Catering services.
4. SAC Code for Outdoor Catering Service:-
Here are the relevant SAC codes in case of Outdoor Catering services-
• SAC Code for Catering Services in Exhibition corridors, Events, Marriage Halls and other open-air/indoor capacities is- 996334
• SAC Code for Catering Services In Trains, Flights Etc – 996335
• SAC Code – 9963
i. This is the SAC code for applicable to the Supplies made by way of or as a separate component of any service or in some other form whatsoever in case of open-air catering.
ii. Goods, being food or some other article for human consumption.
iii. Any sort of beverage for human consumption, whether or not alcoholic as a part of such outside catering service.
iv. Such supply or service must be for money, deferred payment or other valuable consideration.
5. Place of Supply in case of catering:-
The Place of Supply in case of catering services is explained below-
• In case of a catering business, the Place of Supply if within the State, it means that CGST and SGST liability will arise. The caterer having GST registration has to pay all his GST liability as and when it arises.
• If Place of Supply outside the State means IGST will come.
• Very importantly, full Input Tax Credit of GST paid will be available to the caterer having GST registration.
6. Difference between the cafeteria and a banquet:-
As a matter of fact, the banquet and cafeteria are 3 distinct administrations and can’t be considered as one and the same. There are 2 accompanying reasons for it:
i. With regard to the meal service, aside from serving of food, drinks (which are a part of café service) the client additionally gets the location and other subordinate administrations, for example, decorations, lighting, music and so on.
ii. In the dinner corridor administration, the equivalent significance is given to the renting of space and supply of cuisine. There can be a scene where the hall is taken on rent for the occasion, and so on and there is no supply of food e.g for organising a business conference. However there could never be a scenario where there is a supply of food without the rental of ground for any occasion, and so forth.
iii. Subsequently, the feast service can’t be viewed as simply a food supply administration, as it has to come with renting of space for same.
These are the important things to know while doing catering or a banquet business.