Tube Investment of India Limited (GST AAR Uttarakhand)
a. Whether the nominal amount of recoveries made by the Applicant from the employees who are provided food in the factory canteen would be considered as a ‘Supply’ by the applicant under the precisions of Section 7 of Central Goods and Service Tax Act, 2017?
Yes, it is a supply.
b. Whether GST is applicable on the amount recovered from the employees for the food provided in the factory canteen or on the amount paid by the Applicant to the Canteen Service Provider?
GST is applicable on both the amount i.e. amount paid to the canteen service provider and also on the nominal amount recovered from the employees.
c. Whether input tax credit (ITC) is available to the on GST charged by the Canteen Service Providers for providing the catering services of the factory where it is obligatory for the Applicant to provide the same to its employees as mandated under the Factories Act, 1948 even if the answer to question (a) is “No” ?
Benefit of ITC is not admissible on the GST on the amount paid to the canteen service providers and also on the amount recovered from the employees.
d. Whether input tax credit (ITC) can be availed on GST charged by the Canteen service providers, the answer to the question (b) is “Yes –
No, ITC is not admissible on the GST on the amount paid to the canteen service providers.
