In case of a company which has provided a canteen facility ( ie eating place) with food served by caterer.
First Scenario
Caterer has following billing pattern he charges 5% GST. Company recovers part amount from employee
Issue: Whether Company can discharge GST on recovered amount from employee @5% or company has to discharge gst on full value of canteen bill
will valuation rule come into play since employer and employee are related party
Second scenario: Caterer charges 18% GST and Company discharges gst @18% on the entire canteen bill ( company recovers only part amount from employee)
in above case can company claim the itc of canteen ??? will it fall under the exception to sec 17(5) ie like supplies