GST not payable on amount recovered from permanent employees for canteen facility provided by employer

Last updated: 06 May 2024

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The Gujarat Authority for Advance Ruling (AAR) has determined that Goods and Services Tax (GST) is not applicable to amounts recovered from permanent employees for canteen facilities provided by their employer. Furthermore, employers can claim Input Tax Credit (ITC) on the canteen service costs related to these permanent employees.

Court :
AAR, Gujarat

Brief :
The AAR, Gujarat in the case of In Re. M/s. Suzuki Motors Gujarat Pvt. Ltd. [Advance Ruling No. GUJ/GAAR/R/2024/06 dated February 03, 2024] ruled that, GST is not payable on amount recovered for canteen facility provided to employer from permanent employees only. It was further held that, the Applicant is eligible to claim ITC on the amount paid to the supplier of service for providing canteen facilities to the extent of cost borne by the Applicant in relation to permanent employees only.

Citation :
Advance Ruling No. GUJ/GAAR/R/2024/06 dated February 03, 2024

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5673_suzuki_motor_gujarat_pvt_ltd.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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