https://www.taxtmi.com/caselaws?id=448304 Employee recoveries for a subsidised canteen provided to meet a statutory obligation under the Factories Act, 1948 do not constitute supply under section 7 of the GST law where the recovery is only the employees' share and no profit element or independent commercial objective exists. Input tax credit on GST charged by the canteen service provider is available for the mandatory canteen facility because the proviso to the blocked-credit rule applies where the facility is legally obligatory, but the credit is restricted to the employer's actual cost and cannot extend to the portion recovered from employees. The ruling therefore treats the employee contribution as outside supply and limits credit to the employer-borne expenditure. 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 Employee recoveries for a subsidised canteen provided to meet a statutory obligation under the Factories Act, 1948 do not constitute supply under section 7 of the GST law where the recovery is only the employees' share and no profit element or independent commercial objective exists. Input tax credit on GST charged by the canteen service provider is available for the mandatory canteen facility because the proviso to the blocked-credit rule applies where the facility is legally obligatory, but the credit is restricted to the employer's actual cost and cannot extend to the portion recovered from employees. The ruling therefore treats the employee contribution as outside supply and limits credit to the employer-borne expenditure. Case-Laws GST Fri, 05 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448304