Case Law Details
In re Faiveley Transport Rail Technologies India Private Limited (GST AAR Tamilnadu)
In a recent ruling by the GST Authority for Advance Rulings in Tamil Nadu, Faiveley Transport Rail Technologies India Private Limited sought clarity on various aspects of GST liability related to services provided to its employees. The ruling addresses several key points regarding the applicability of GST and the eligibility for Input Tax Credit (ITC) on different employee-related expenses. Here’s a breakdown of the ruling:
(a) GST on Canteen Services: The ruling states that Faiveley Transport Rail Technologies India Private Limited is liable to discharge GST on the amount charged to its employees for the supply of canteen services provided on its own account.
(b) ITC on Food Provision: ITC is eligible on inward supplies received for providing food to employees, provided the establishment has more than 250 direct employees. However, the applicant must reverse proportionate credit to the extent of the cost recovered from employees.
(c) Medical Insurance Premium: GST is not liable to be discharged on the recovery of medical insurance premium from employees if it is provided as per the contractual agreement between the employer and the employee.
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