As per Section 9(1) of the CGST Act – GST shall be levied on the Intra state supplies of goods or services or both. It means GST could only be levied on those activities which constitute a “supply” under Section 7 of the said Act.
Provision of canteen facility to employees, as a part of their pay package, is not a supply per se and accordingly no GST needs to be charged on such perquisites.
The GST law was with also the objective of reducing multiple litigations pertaining to erstwhile regime like VAT, Service Tax, and Excise etc. being put to rest. However, there are still aspects like compensatory damages, employee notice period recovery which needs clarity. In many private organizations, employees would be legally bound to serve for specified […]
