GST AAR Ruling on Subsidized Canteen Charges for Employees

In re Shriram Pistons And Rings Limited (GST AAR Uttar Pradesh) The ruling addresses the question of whether providing subsidized food to employees falls within the scope of supply, consideration, and GST applicability. It also examines the eligibility of input tax credit on canteen charges. The AAR considers the arrangement made by Shriram Pistons And Rings Limited, wherein a portion of the canteen charges is borne by the company, and the remaining portion is borne by its employees. The company collects the employees’ portion and pays it to the canteen service provider. The AAR examines...