No GST on Subsidized Canteen Recovery; ITC Allowed: Kerala AAR

In re Plantlipids Private Limited (GST AAR Kerala) Goods and Services Tax (GST) Authority for Advance Ruling (AAR) in Kerala has issued a ruling concerning M/s. Plant Lipids Pvt. Ltd., a spice oleoresin manufacturer, regarding the taxability of subsidized food provided in its in-house canteen and the eligibility for Input Tax Credit (ITC) on related expenses. The AAR has clarified that GST is not chargeable on amounts recovered at subsidized rates from both regular and contract employees for canteen food provided under a statutory obligation. Furthermore, the company is eligible to claim full ...