Factory Canteen ITC Allowed Only to Extent of Actual Employer Expenditure

In re Aditya Auto Products & Engineering India Pvt. Ltd. (GST AAR Karnataka) The Karnataka Authority for Advance Ruling (AAR) examined whether M/s Aditya Auto Products & Engineering India Pvt. Ltd. was entitled to avail input tax credit (ITC) on GST charged by canteen service providers (CSPs) for catering services provided at its factory premises. The applicant manufactures and trades automotive parts, operates three manufacturing units in Karnataka, employs approximately 1,288 employees, and is registered under the Factories Act, 1948. To comply with Section 46 of the Factories Act, t...