GST DAILY – 277

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Deduction of nominal amount from employees’ salary for canteen facility would not be considered as ‘supply’: AAR

THE AUTHORITY FOR ADVANCE RULING UNDER GST, GUJARAT IN THE CASE OF DORMER TOOLS INDIA PVT. LTD., decided on 30-5-2024

👉 The AUTHORITY FOR ADVANCE RULING Judgement:-

✔️ Where assessee/applicant contended that nominal salary deductions for canteen facilities in factory premises were not ‘supply’ under Section 7 of CGST Act, Authority ruled deductions non-supply and allowed input tax credit for costs borne by assessee/applicant for permanent employee’s canteen services under Factories Act.

Sections 7 and 17(5)(b) of Central Goods and Services Tax Act, 2017