The AAR ruled that Input Tax Credit (ITC) is available to the...

The AAR ruled that Input Tax Credit (ITC) is available to the applicant for GST charged on food and beverages provided through mandatory canteen facilities under the Factories Act, 1948, read with Gujarat Factories Rules, 1963. This eligibility applies specifically to canteen services for factory employees where such provision is obligatory under law. However, the ITC is limited strictly to the portion of the cost borne by the applicant company, excluding any contribution made by employees. This ruling creates a specific exception to the general restriction on ITC for food and beverages by recognizing the statutory obligation to provide canteen facilities.