No GST on Canteen charges recovered from employees & paid to service provider

In re Astral Ltd. (GST AAR Gujarat)

Applicant 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 Astral whereas the remaining part is borne by its employees. The said employees’ portion canteen charges is collected by Astral and paid to the Canteen Service Provider. Astral submitted that it does not retain with itself any profit margin in this activity.

In view of the above GST, at the hands of Astral, is not lev

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