India GST Council proposes changes to outdoor catering tax credits

During the 57th GST Council Meeting held on October 8, 2026, officials proposed a relaxation of blocked-credit provisions under Section 17(5)(b)(i) of the CGST Act. The recommendation aims to remove specific restrictions regarding input tax credit (ITC) for outdoor catering services.

If enacted, this amendment could allow businesses to claim credits for catering expenditures related to dealer conferences, sales meetings, product launches, and training programs. However, the proposal is not a blanket entitlement for all food or beverage expenses, as other regulations regarding service classification and supplier-side rate restrictions may still apply. The recommendation is not yet an operative amendment, and existing laws remain in effect until final provisions are enacted.