https://www.taxtmi.com/caselaws?id=774195 A statutory canteen maintained under the Factories Act, 1948 was treated as an employment welfare obligation, not a business supply in the course or furtherance of business. Subsidised recoveries from regular and contract employees for food supplied in that canteen were held outside taxable supply under the CGST Act and Schedule III, supported by the GST circular on employment-related perquisites. The ruling also held that the restriction on input tax credit for food and beverages does not apply where such provision is obligatory under law. Accordingly, input tax credit on inward supplies used for the mandatory canteen was admissible, and partial recovery from employees did not affect eligibility. en-us Wed, 02 Apr 2025 00:00:00 +0530 Wed, 02 Jul 2025 11:12:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774195 A statutory canteen maintained under the Factories Act, 1948 was treated as an employment welfare obligation, not a business supply in the course or furtherance of business. Subsidised recoveries from regular and contract employees for food supplied in that canteen were held outside taxable supply under the CGST Act and Schedule III, supported by the GST circular on employment-related perquisites. The ruling also held that the restriction on input tax credit for food and beverages does not apply where such provision is obligatory under law. Accordingly, input tax credit on inward supplies used for the mandatory canteen was admissible, and partial recovery from employees did not affect eligibility. Case-Laws GST Wed, 02 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774195