GST CANTEEN RECOVERY
This query is : Resolved
15 October 2019
The companies are maintaining canteen for employees particularly the number of employees exceeds 250. The company is recovering cost (part of the food) from employee salary and contributing cost of the food. The all the vegetables, grocery , milk and fuel have been purchased by the company in their name.
There are two point of view that recovery from employees for canteen is subject to GST as outward supply and another view that no GST is payable.
Recently one advance ruling is given in Kerala stating that GST is payable for canteen recovery.
I request expert view of whether GST is payable or not for canteen recovery of employees.
There are two point of view that recovery from employees for canteen is subject to GST as outward supply and another view that no GST is payable.
Recently one advance ruling is given in Kerala stating that GST is payable for canteen recovery.
I request expert view of whether GST is payable or not for canteen recovery of employees.
17 October 2019
AAR is applicable only to the applicant (Though, it can be considered as benchmark)
This issue is controversial from the beginning.
Press Release dt 10 July 2017 by Govt indicated that any supply made by the employer to its employee in terms of contractual agreement entered into between them, would not be subjected to GST.
However, experts are of the opinion ( based on AAR decisions ) that food supply to employee by the employer on concessional rates are subject to GST
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8489
This issue is controversial from the beginning.
Press Release dt 10 July 2017 by Govt indicated that any supply made by the employer to its employee in terms of contractual agreement entered into between them, would not be subjected to GST.
However, experts are of the opinion ( based on AAR decisions ) that food supply to employee by the employer on concessional rates are subject to GST
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8489
17 October 2019
Thanks for your view.
Is there any GST council/ department / finance ministry clarification or any case law relating to the above subject.
Is there any GST council/ department / finance ministry clarification or any case law relating to the above subject.
18 October 2019
Case law on the same issue was there prior to GST.
M/S. Bhimas Hotels Pvt. ... vs The Union Of India, Rep. By Its ... on 23 March, 2017.
No clarification by GST Council/ Deptt/ Finance Ministry is available on the public domain.
M/S. Bhimas Hotels Pvt. ... vs The Union Of India, Rep. By Its ... on 23 March, 2017.
No clarification by GST Council/ Deptt/ Finance Ministry is available on the public domain.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Relief u/s Section 89
- Sales return eway bill
- GST ON DAMAGED GOODS
- LTCG for Assmt year 26-27
- Tax liability on income of freelancer
- REGARDING GST LIABILITY/....
- Plot of land. Cost of Acquisition
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
