About Canteen Recovery


Sibajit Thakur (Service Holder)     23 October 2019

Sibajit Thakur
Service Holder 
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If employer recover from employee a nominal amount from his salary for providing food for his employment. Employer received the service from outwar caterers for providing food for his employees and employer pay GST against this service and same is not availed ITC. Is employer is required to pay GST as per recent AAR...if required to pay GST what will be basis of AV i.e. on GST recovery or outward caterers value.

avater

Pankaj Rawat (GST Practitioner)     24 October 2019

Pankaj Rawat
GST Practitioner 
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Yes the AAR , Kerala order no. CT531/18-C3 in case of Caltech polymer Pvt Ltd. , it's Taxable supply , but Ruling does dealt with valuation of Such supply by Employer to Employee.
As the Employer & Employee are deemed to be related person as per the explanation in Section 15 , so the valuation is to be done as per Rule 28 , the transaction value cannot be subsidised rate being charged from Employee.

So in my view GST shall be charged on atleast at the rate on which employer receiving from caterer.

avater

Pankaj Rawat (GST Practitioner)     24 October 2019

Pankaj Rawat
GST Practitioner 
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* Ruling does NOT Dealt with valuation how the valuation is done.


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