Ferrero India Liable for GST on Canteen, Transport Recoveries; Notice Pay Exempt

In re Ferrero India Pvt. Ltd. (GST AAR Maharashtra)

The Maharashtra Authority for Advance Ruling (AAR) has ruled that Ferrero India Pvt. Ltd. is liable to pay Goods and Services Tax (GST) on the amounts recovered from its employees for providing subsidized canteen and bus transportation services. However, the AAR clarified that notice pay recoveries from employees who do not serve the agreed notice period are not taxable under GST.

Ferrero India, a manufacturer of chocolate and confectionary products, sought a ruling on the GST applicability of recoveries made from employees

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