Case Law Details
In re Federal-Mogul Anand Bearings India Limited (GST AAAR Himachal Pradesh)
Question 1: Whether the subsidized deduetion made by the Appellant from the Employees who are availing food in the factory would he considered as a “supply” by the Appellant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Himachal Pradesh Goods and Service Tax Act, 2017? And;
Question 2: Whether GST is applicable on the nominal amount deducted from the salaries of its employees? And.,
Question 3: Whether GST would be applicable on the nominal amount deducted from the Manpower supply contractor in case of contractual employees?
Answer: Supply of food to the employees and contract workers is a supply under the provisions of Section 7 of the CGST Act, 2017 and the Himachal Pradesh Factories Rules, 1950 and accordingly, it is leviable to the GST.
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This ruling is in complete desregard of the circular issued clarifying and providing releif against charging GST on canteen supply. What purpose has been served by that circular ? Why Govt tried to clarify if everything has to be taxable ?