https://www.taxtmi.com/highlights?id=94738 AAR held that subsidized recoveries from regular employees for canteen services mandated under the Factories Act do not constitute "supply" under Section 7 of CGST/GGST Acts, following its ruling in Troikaa Pharmaceuticals and CBIC Circular No. 172/04/2022-GST; hence, no GST is leviable on the employees' share. However, contractual workers are not in an employer-employee relationship with the applicant; the applicant deals only with the contractor, who retains supervision and control. Consequently, subsidized amounts recovered from contractual workers towards canteen charges constitute a taxable "supply" by the applicant, and GST is payable on the amount recovered from payments to the workers' contractor, not on open market value. en-us Wed, 03 Dec 2025 08:57:10 +0530 Wed, 03 Dec 2025 08:57:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=94738 AAR held that subsidized recoveries from regular employees for canteen services mandated under the Factories Act do not constitute "supply" under Section 7 of CGST/GGST Acts, following its ruling in Troikaa Pharmaceuticals and CBIC Circular No. 172/04/2022-GST; hence, no GST is leviable on the employees' share. However, contractual workers are not in an employer-employee relationship with the applicant; the applicant deals only with the contractor, who retains supervision and control. Consequently, subsidized amounts recovered from contractual workers towards canteen charges constitute a taxable "supply" by the applicant, and GST is payable on the amount recovered from payments to the workers' contractor, not on open market value. Highlights GST Wed, 03 Dec 2025 08:57:10 +0530 https://www.taxtmi.com/highlights?id=94738