https://www.taxtmi.com/caselaws?id=436271 Employee recoveries towards subsidised canteen charges for a mandatory factory canteen were held not to be an independent taxable supply under section 7 of the CGST Act, because the recovery was only a cost-sharing mechanism for a service provided to satisfy a statutory obligation under the Factories Act and carried no profit element. Input tax credit on GST charged by the canteen service provider was allowed only to the extent the employer bore the cost of the compulsory canteen facility, since the blocking provision for food and beverages is relaxed by its proviso where the employer is legally required to provide the service. Credit was denied on the employee-recovered portion. en-us Fri, 31 Mar 2023 00:00:00 +0530 Wed, 16 Apr 2025 12:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436271 Employee recoveries towards subsidised canteen charges for a mandatory factory canteen were held not to be an independent taxable supply under section 7 of the CGST Act, because the recovery was only a cost-sharing mechanism for a service provided to satisfy a statutory obligation under the Factories Act and carried no profit element. Input tax credit on GST charged by the canteen service provider was allowed only to the extent the employer bore the cost of the compulsory canteen facility, since the blocking provision for food and beverages is relaxed by its proviso where the employer is legally required to provide the service. Credit was denied on the employee-recovered portion. Case-Laws GST Fri, 31 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436271