GST on Employee Canteen Recoveries Upheld as Taxable Due to Consideration Element

In re Piaggio Vehicles Pvt Ltd (GST AAR Maharashtra) The Authority for Advance Ruling (AAR), Maharashtra, examined an application filed under Section 97 of the CGST Act and MGST Act by a manufacturing company seeking clarity on two issues: (i) whether GST is payable on recoveries made from employees towards subsidized canteen facilities, and (ii) whether GST applies to notice pay recoveries from employees who do not serve the full notice period. Regarding the canteen facility, the applicant provides subsidized meals to employees as part of its employment terms and in compliance with obligation...