https://www.taxtmi.com/caselaws?id=753615 A mandatory factory canteen provided under the Factories Act and employee policy is not an independent taxable supply under GST merely because a nominal amount is recovered from employees' salaries. The recovery is treated as part of the employment-related canteen arrangement, consistent with the exclusion for services by an employee in the course of employment and the CBIC clarification on employment perquisites. Input tax credit on canteen GST is blocked for food and beverages generally, but the statutory proviso permits credit where the employer is legally obliged to provide the facility. That credit is limited to the tax burden borne by the employer and excludes the employee-recovered portion. en-us Thu, 30 May 2024 00:00:00 +0530 Mon, 05 May 2025 11:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753615 A mandatory factory canteen provided under the Factories Act and employee policy is not an independent taxable supply under GST merely because a nominal amount is recovered from employees' salaries. The recovery is treated as part of the employment-related canteen arrangement, consistent with the exclusion for services by an employee in the course of employment and the CBIC clarification on employment perquisites. Input tax credit on canteen GST is blocked for food and beverages generally, but the statutory proviso permits credit where the employer is legally obliged to provide the facility. That credit is limited to the tax burden borne by the employer and excludes the employee-recovered portion. Case-Laws GST Thu, 30 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753615