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GST on Canteen Recovery

This query is : Resolved 

Dear experts,

We are manufacturing company and not exceeds 250 of employees and we are taken food from outside canteen and we are avail ITC on Canteen bill.
same we are deducted canteen recovery from employees.
whether GST is payable on canteen recovery of employees.
if it is payable how to we pay the GST

With Regards
K Rama Krishna

GST payable on canteen recovery from employees. Avail ITC on canteen bill to the extent recovery.

GST payable on Recovery. If you are not paying on Recovery then you can not avail ITC

For less than 250 workment , Factories Act doesn't make compulsory facility of canteen in the factory.Hence , in my view, you can not avail ITC. If canteen food is subsidized and some amount is recovered from employees then no gst is payable on such recovery if canteen facility is part of employment agreement and will then be covered in schedule III (Tata Motors-AAR MH).
But is you are recovering full cost from employees then it will be supply and GST will have to be levied (AAAR Kerala).



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