Case Law Details
In re Intas Pharmaceuticals Limited. (GST AAR Gujarat)
Whether GST, at the hands of the applicant, is leviable on the amount representing the employees portion of canteen charges, which is collected by the applicant from employees and paid to the Canteen Service Provider?
Appellant has arranged a canteen for its employees, which is run by a Canteen Service Provider. As per their arrangement, part of the Canteen charges is borne by Intas whereas the remaining part is borne by its employees. The said employees’ portion canteen charges is collected by Intas and paid to the Canteen Service Provider. Intas submitted that it does not retain with itself any profit margin in this activity of collecting employees’ portion of canteen charges. In view of the same GST, at the hands of the Intas, is not leviable on the amount representing the employees portion of canteen charges, which is collected by Intas and paid to the Canteen service provider.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
M/s. Intas Pharmaceuticals Limited., hereinafter referred to as Intas for the sake of brevity, has sought Ruling on whether it is required to charge GST on the amount collected from its employees towards canteen charges. Intas is providing canteen facility to their employees at a concessional amount and recovering a part of the total cost of food and beverages from its employees and the balance cost is borne by Intas. Intas does not retain any profit margin in the activity of collecting employee’s portion of canteen charges.
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