GST DAILY – 492 : No GST on amount recovered from employees towards canteen charges: AAAR

THE APPELLATE AUTHORITY FOR ADVANCE RULING UNDER GST, GUJARAT IN THE CASE OF Troikaa Pharmaceuticals Ltd., decided on 28-2-2025

👉 The AAAR Court Judgement:-

✔️ Where applicant-company provided canteen service under Factories Act, GST at hands of applicant-company, is not leviable on amount representing employees portion of canteen charges, which is collected by applicant and paid to canteen service provider.

✔️ Where applicant company provided canteen service under Factories Act, GST at hands of applicant-company, is leviable on amount representing contractual worker portion of canteen charges, which is collected by applicant and paid to centeen service provider.

✔️ Where applicant company provided canteen service under Factories Act, ITC on GST paid on canteen facility, is admissible to applicant-company under section 17(5)(b) of CGST Act on food supplied to employees of company subject to condition that burden of GST have not been passed on to employees of company.

T✔️ Where applicant company provided canteen service under Factories Act, ITC on GST paid on canteen facility, is not admissible to applicant-company under section 17(5)(b) of CGST Act on food supplied to contractual worker supplied by labour contractor.