Case Law Details
In re Tube Investment of India Limited (AAR GST Uttarakhand)
A. Whether the nominal amount of recoveries made by the Applicant from the employees who are provided food in the factory canteen would be considered as a “Supply” by the applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017?
Answer: Yes, it is a “Supply” under the provisions of Section 7 of the CGST Act, 2017.
B. Whether GST is applicable on the amount recovered from the employees for the food provided in the factory canteen or on the amount paid by the Applicant to the Canteen Service Provider?
Answer: Yes, GST is applicable on both the amounts i.e. amount paid to the canteen service provider and also on the nominal amount recovered from the employees.
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Why It can not be resolved once at for all. So many advance ruling by so many states and so many divergent views ? Its ridiculous.