AAR held that subsidized recoveries from regular employees for...

AAR held that subsidized recoveries from regular employees for canteen services mandated under the Factories Act do not constitute "supply" under Section 7 of CGST/GGST Acts, following its ruling in Troikaa Pharmaceuticals and CBIC Circular No. 172/04/2022-GST; hence, no GST is leviable on the employees' share. However, contractual workers are not in an employer-employee relationship with the applicant; the applicant deals only with the contractor, who retains supervision and control. Consequently, subsidized amounts recovered from contractual workers towards canteen charges constitute a taxable "supply" by the applicant, and GST is payable on the amount recovered from payments to the workers' contractor, not on open market value.