Canteen service provided under factories Act

[Yatin Bhopi]

Dear expert

We are providing canteen service in the factory which is mandatory under factories Act.

1. Our canteen contractor is charging monthly bill on the company @18%

2. We recover some nominal charges from every employee

3. We are paying GST on recoveries made from employees

Whether ITC is available on GST charged by canteen contractor?

AI Summary

Debate on ITC Eligibility for Canteen Services Under GST: Experts Discuss Section 17(5)(b) of CGST Act A discussion on the applicability of Input Tax Credit (ITC) under the Goods and Services Tax (GST) for canteen services provided by a factory, as mandated by the Factories Act. The query involves whether ITC is available on GST charged by a canteen contractor. One expert argues that ITC is available under Section 17(5)(b) of the CGST Act since the service is obligatory by law. Another expert disagrees, citing section 17(5)(b)(i), while a third expert concurs with the first, affirming ITC eligibility when services are legally mandated.