Salary Deductions for Canteen Services Not Considered Supply of Service though ITC is available as canteen services provided are obligatory in nature
Last updated: 20 June 2024
Court :
AAR, Gujarat
Brief :
The AAR, Gujarat in the case of M/s. Dormer Tools India Pvt Ltd [Advance Ruling no. GUJ/GAAR/R/2024/12 dated May 30, 2024], ruled that the nominal amount deducted by the Applicant from employee salary would not be considered as supply of services as per Section 7 of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). The AAR, Gujarat further ruled that ITC would be available to the Appellant as per proviso to Section 17(5)(b) of the CGST Act, wherein the canteen service provided by the Applicant is obligatory in nature.
Citation :
dvance Ruling no. GUJ/GAAR/R/2024/12 dated May 30, 2024
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Bimal Jain
Published in GST
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