Case Law Details
Case Name : In re Caltech Polymers Pvt. Ltd. (GST AAR Kerala)
Related Assessment Year :
Courts :
AAR Kerala Advance Rulings
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In re Caltech Polymers Pvt. Ltd. (GST AAR Kerala)
It is hereby clarified that recovery of food expenses from the employees for the canteen services provided by company would come under the definition of ‘outward supply’ as defined in Section 2(83) of the Act, 2017, and therefore, taxable as a supply of services under GST.
FULL TEXT OF ADVANCE RULING
1. M/s. Caltech Polymers Pvt. Ltd., Malappuram (hereinafter called the applicant or the Company) has preferred an application for Advance Ruling on whether recovery of food expenses from employees for the canteen service provided by t...
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Amount is deducted from employees but gst is paid by company is it correct. Please help
In case of Canteen which is run by a contractor , who is charging bills along with GST , whether Company still required to pay the RCM on subsidized portion of canteen charges which is recovered from Employees?? In this case if we pay under RCM , then incidence of Tax/GST would be double to the Company. Kindly clarify..
can you tell me its applicable from which date ?
If anybody clarify my doubt please.
In our company providing Canteen to employees but canteen we have given contract to supply of food for employees and we are collecting food expenses from employee only 25% example per day total food expenses is rs.100/- but we have collecting Rs.25/- only so the food supplier monthly he will submit the bill including tax & he was registered my doubt is can i claim the input tax & provide me section also ,please clarify me or send me email karthikking1989@gmail.com
Rate will be 5%, no ITC will be allowed
Sir, the GST paid on purchases / inward supplies meant for canteen are not eligible for ITC as per the Section 17(5)(b).
According to this Ruling, the canteen food supllied to employees on subsidised rates termed as consideration and thus it’s comes under meaning of outwards supplies, therefore GST applicable.
Bus as per basic sec 16(1) of the act, the ITC is available for goods aor services or both to registered person which are used or intended to be used in the course of furtherance of the business.
It mean the ruling is established that the canteen supplies are outwards supplies to employees and justifies furtharance of the business.
Hence my contention is that the ITC should be applicable on canteen supplies when the canteen supplies made to employees on payment / subsidised payment basis to that extent.
Expert comments are invited please.
U think tax will be 18% and it will be allowed.
I am agree with Mr. Sree,.
Simply provide food FREE of Cost to employees, and reduce their allowances to the extent of estimated cost, to avoid the complication. The problem has arisen only because the company is collecting money from employees for food.
If providing food to the employees is taxable then whether the company can avail the ITC on the goods and services used in supplying the canteen services.
SIR WHAT WILL THE RATE IS IT 18% AS OUTWARD CATERING SERVICE OR 5%