https://www.taxtmi.com/caselaws?id=446058 Recovery of nominal amounts from employees and contract workers for subsidised canteen food was treated as a taxable supply under GST because the payments were direct consideration for food supplied and the activity formed part of business, being incidental to manufacturing and linked to the statutory canteen requirement. The absence of a separate employment clause did not alter the character of the arrangement, and the employer-perquisite circular was held inapplicable on the facts. Input tax credit on GST charged by the canteen service provider was also denied, as the credit-saving proviso to section 17(5)(b) was treated as limited to statutorily required facilities, while the applicable rate notification required supply at 5% without ITC. en-us Tue, 26 Sep 2023 00:00:00 +0530 Tue, 22 Apr 2025 16:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446058 Recovery of nominal amounts from employees and contract workers for subsidised canteen food was treated as a taxable supply under GST because the payments were direct consideration for food supplied and the activity formed part of business, being incidental to manufacturing and linked to the statutory canteen requirement. The absence of a separate employment clause did not alter the character of the arrangement, and the employer-perquisite circular was held inapplicable on the facts. Input tax credit on GST charged by the canteen service provider was also denied, as the credit-saving proviso to section 17(5)(b) was treated as limited to statutorily required facilities, while the applicable rate notification required supply at 5% without ITC. Case-Laws GST Tue, 26 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446058