https://www.taxtmi.com/caselaws?id=448304 The AAR Gujarat ruled that subsidized deductions made by an employer from employees for mandatory factory canteen services under Section 46 of the Factories Act, 1948 do not constitute a supply under Section 7 of CGST Act, 2017. The authority held this arrangement falls under employer-employee contractual perquisites exempt from GST per Circular No. 172/04/2022-GST. The company was deemed eligible for input tax credit on GST charged by the canteen service provider, but restricted to the extent of costs actually borne by the employer only. en-us Fri, 05 Jan 2024 00:00:00 +0530 Fri, 25 Apr 2025 10:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448304 The AAR Gujarat ruled that subsidized deductions made by an employer from employees for mandatory factory canteen services under Section 46 of the Factories Act, 1948 do not constitute a supply under Section 7 of CGST Act, 2017. The authority held this arrangement falls under employer-employee contractual perquisites exempt from GST per Circular No. 172/04/2022-GST. The company was deemed eligible for input tax credit on GST charged by the canteen service provider, but restricted to the extent of costs actually borne by the employer only. Case-Laws GST Fri, 05 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448304