Case Law Details
In re Zentiva Private Limited (GST AAR Gujarat)
The recent ruling by the Gujarat Authority for Advance Rulings (AAR) on the case of Zentiva Private Limited has brought significant clarity on the GST implications for employee benefits. Zentiva, a pharmaceutical company, provides canteen and transportation facilities to its employees, raising questions about GST liability on these services. This article delves into the specifics of the ruling and its broader implications for companies offering similar benefits.
Background of the Case
Zentiva Private Limited operates a pharmaceutical manufacturing unit with over 250 employees. As per the Factories Act, 1948, Zentiva is mandated to provide canteen facilities to its workers. The company engages third-party canteen service providers (CSP) and transport service providers (TSP) to fulfill these obligations. The company recovers a nominal fee from its employees for these services, leading to questions about the applicability of GST.
Key Questions Addressed by AAR
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