GST DAILY – 165

Canteen services provided by employer to its employees in terms of contractual agreement are exempted from GST

The Telengana AAR In the case of KIRBY BUILDING SYSTEMS AND STRUCTURES INDIA PVT. LTD decided on 15-11-2023

✔️ Where supply of canteen services by factory to its employees is exempt from GST, and applicant provides canteen services in terms of contractual agreement between employer and his employees, therefore, canteen services provided by applicant are exempted from GST under Circular No. 172/04/2022, dated 6-7-2022

✔️ Where applicant has recovered only nominal amounts and had recorded these costs borne in their books of accounts for providing canteen services, therefore, input tax credit in respect of such canteen facilities shall be available to applicant

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