Input & OutPut Tax on Susidised Casnteen

[Ravi K]

We have an canteen at plant having more than 250 Employees, canteen contractor billing at 5% GST. We are providing subsidized foods to employees & workmans supplied through Manpower Supply contractor, nominal amount will recover from Employees salary & Manpower Supply contractor.

Question 1 - Whether We can avail GST Input Credit on Canteen supply bill charged at 5%

Question 2 -Whether We can pay GST at 5% on the recovery amount from Employees salary or on Open market Value

Question 3 -Whether We can pay GST on 5% on the recovery amount from Manpower Supply contractor?

Also specify other options available with permutation and combination which reduces the cost to company

AI Summary

GST on Canteen Services: Input Credit, Salary Recoveries, and Contractor Payments Explained in Forum Discussion A discussion on a forum addressed the applicability of Goods and Services Tax (GST) on a subsidized canteen service provided by a company with over 250 employees. The main queries were about availing GST input credit on canteen bills, GST payment on salary recoveries from employees, and GST on recoveries from a manpower supply contractor. It was clarified that input credit is available if providing a canteen is obligatory under law. GST is not applicable on employee salary recoveries as they are considered employment-related perquisites. However, GST should be paid on recoveries from the manpower supply contractor due to the absence of an employer-employee relationship. Various rulings and interpretations were discussed, highlighting complexities and differing views on the issue.