Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Objective characteristics and principal use govern mining-tyre classification, while fresh advance ruling applications may rely on additional technica...
Administrative fraud classification suspension does not halt independent criminal investigation or warrant-based searches into alleged economic offenc...
The AAAR dismissed the appeal, holding that GST is applicable on canteen charges recovered from contractual workers, but not from direct employees. While providing canteen facilities is mandatory under Section 46 of Factories Act, the appellant failed to establish that it assumed responsibility as primary employer due to contractor's failure to fulfill statutory obligations. Evidence indicated contractors were paid gross amounts including canteen allowances. Input tax credit (ITC) remains available only for canteen services provided to direct employees under the Factories Act mandate, not for contractual workers. The AAAR rejected the appellant's reliance on Circular No. 172/4/2022-GST, as the contractual arrangement did not qualify under the specified exemptions.
The AAAR dismissed the appeal, holding that GST is applicable on canteen charges recovered from contractual workers, but not from direct employees. While providing canteen facilities is mandatory under Section 46 of Factories Act, the appellant failed to establish that it assumed responsibility as primary employer due to contractor's failure to fulfill statutory obligations. Evidence indicated contractors were paid gross amounts including canteen allowances. Input tax credit (ITC) remains available only for canteen services provided to direct employees under the Factories Act mandate, not for contractual workers. The AAAR rejected the appellant's reliance on Circular No. 172/4/2022-GST, as the contractual arrangement did not qualify under the specified exemptions.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
