04 December 2019
One factory running canteen as it is statutory obligation on the part of employer ( number of employees more than 25). The company is providing grocery, vegetable and milk required for running the factory. The labour contractor is engaged for canteen services. The company is recovered part of the amount from employees and contribute part of the amount.
Request expert opinion on the applicability of GST for the above as there is big confusion because of the following :
1. Section 7 of GST - Supply to related party and distinct person 2. CBIC Press release dated 10.07.2017 , no GST will attract if employer provides service as the part of contractual agreement to the employee. 3. Clarification given to section 17 (5) (b) GST ITC is allowed if the company provides food to meet statutory obligation. 4. Advance ruling confirming GST for canteen food and confirmation by adjudicating advance rule authority for the same
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