https://www.taxtmi.com/caselaws?id=446823 AAR Tamil Nadu ruled that GST is applicable on amounts recovered from employees for subsidized canteen food. The Authority held that operating a mandatory canteen facility under the Factories Act constitutes supply of service in the course of business, making it an outward supply. While the employer bears certain mandated costs, the subsidized amounts collected from employees attract GST liability. The ruling clarified that GST exemption applies only to free perquisites under employee agreements, not to subsidized recoveries. Therefore, GST must be levied on the subsidized amounts recovered from employees for canteen services. en-us Tue, 05 Sep 2023 00:00:00 +0530 Wed, 23 Apr 2025 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446823 AAR Tamil Nadu ruled that GST is applicable on amounts recovered from employees for subsidized canteen food. The Authority held that operating a mandatory canteen facility under the Factories Act constitutes supply of service in the course of business, making it an outward supply. While the employer bears certain mandated costs, the subsidized amounts collected from employees attract GST liability. The ruling clarified that GST exemption applies only to free perquisites under employee agreements, not to subsidized recoveries. Therefore, GST must be levied on the subsidized amounts recovered from employees for canteen services. Case-Laws GST Tue, 05 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446823