ITC of ST paid on manpower supply services used for providing canteen facility not eligible

Federal Mogul Goetze India Ltd. (GST AAR Karnataka)

Whether the subsidized deduction made by the applicant from the employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of the CGST / KGST Act 2017.

a. In case answer to above is yes, Whether GST is applicable on the nominal amount being recovered by the Applicant?

The subsidized deduction made by the applicant, from the employees who are availing food in the factory, would be considered towards “supply” of canteen service by the Applicant under the provisions of Section 7 of the CGST/ KGST Act 2017. GST is liable to be paid by the applicant on the value of the said supply to be determined under Rule 30 or 31 of the CGST Rules 2017

b. Whether Input Tax Credit (“ITC”) of the GST charged by the Service Provider would be eligible for availment to the Applicant?

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