GST applies on Subsidized Canteen & Transport Recoveries: AAR Maharashtra

In re Thyssenkrupp Industries India Pvt. Ltd. (GST AAR Maharashtra) The Authority for Advance Ruling (AAR), Maharashtra examined whether GST is applicable on recoveries made by an employer from employees towards canteen facilities, bus transportation services, and notice pay deductions. The applicant, a company engaged in manufacturing and engineering services, provides canteen and transportation facilities to employees through third-party service providers and recovers part of the cost from employees. The AAR analysed the scope of “supply” under Section 7 of the CGST Act, which requires t...