https://www.taxtmi.com/caselaws?id=442542 AAR Gujarat ruled that subsidized canteen facility provided by employer to permanent employees does not constitute supply under Section 7 of CGST Act, 2017, as it falls under Schedule III. However, canteen services to contract workers constitute taxable supply since no employer-employee relationship exists. The applicant must pay GST on amounts recovered from contract workers for canteen services. ITC is available for canteen expenses relating to permanent employees as mandated under Factories Act, but blocked under Section 17(5)(b) for contract workers since no legal obligation exists to provide them canteen facilities. en-us Thu, 24 Aug 2023 00:00:00 +0530 Sat, 19 Apr 2025 13:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442542 AAR Gujarat ruled that subsidized canteen facility provided by employer to permanent employees does not constitute supply under Section 7 of CGST Act, 2017, as it falls under Schedule III. However, canteen services to contract workers constitute taxable supply since no employer-employee relationship exists. The applicant must pay GST on amounts recovered from contract workers for canteen services. ITC is available for canteen expenses relating to permanent employees as mandated under Factories Act, but blocked under Section 17(5)(b) for contract workers since no legal obligation exists to provide them canteen facilities. Case-Laws GST Thu, 24 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442542