https://www.taxtmi.com/caselaws?id=431075 AAR Karnataka ruled that subsidized canteen services provided by a manufacturer to employees constitute taxable supply under Section 7(1)(a) of CGST Act 2017. The canteen facility, being incidental to manufacturing activity, falls within business definition under Section 2(17)(b). Since consideration is recovered through salary deductions, it's not free supply. Services attract 5% GST without ITC under SAC 996333 per Notification 11/2017-Central Tax (Rate). Value determination required under Rules 30 or 31. Applicant not entitled to ITC on manpower supply services used for canteen operations. en-us Tue, 29 Nov 2022 00:00:00 +0530 Fri, 11 Apr 2025 16:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431075 AAR Karnataka ruled that subsidized canteen services provided by a manufacturer to employees constitute taxable supply under Section 7(1)(a) of CGST Act 2017. The canteen facility, being incidental to manufacturing activity, falls within business definition under Section 2(17)(b). Since consideration is recovered through salary deductions, it's not free supply. Services attract 5% GST without ITC under SAC 996333 per Notification 11/2017-Central Tax (Rate). Value determination required under Rules 30 or 31. Applicant not entitled to ITC on manpower supply services used for canteen operations. Case-Laws GST Tue, 29 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431075