Recovery for foods to worker

225 views 2 replies
We own a factory and provide workers food at a very concessional rates... Is the token amount recovered say Rs 1 per diet is taxable or not...
Replies (2)
Yes. Under GST, Tax is charged on supply of goods. This transaction falls under schedule 2 of GST Act.
However, if you do not charge them any amount (i.e. free food ) then it will not attract GST because you can classify it as a gift to employee, which is exempted upto 50,000 Rs in a financial year.
If Canteen facilities is compulsory as any law than all input credit is eligible for canteen expenses. if Canteen is not madentory, then rules as per GST no tax liabilities on without consideration but you have to reverse input tax credit on such item.which provide with no consideration or under valuation.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details