Mandatory employee canteens: recoveries avoid GST, while input tax credit is limited to the employer-borne cost.

Mandatory employee canteens: recoveries avoid GST, while input tax credit is limited to the employer-borne cost. https://www.taxtmi.com/highlights?id=104320 Employee recoveries for subsidised canteen meals provided under statutory obligations at factories, R&D facilities and corporate offices are treated as employer-employee contractual perquisites rather than supplies under section 7 of the CGST Act; GST is therefore not payable on those recoveries. Input tax credit on GST charged by the canteen provider is available where the facility is legally mandatory, because the proviso to section 17(5)(b) applies across that clause. Credit remains restricted to the employer-borne canteen cost, while the proportion attributable to employee meal recoveries is disallowed. en-us Tue, 29 Sep 2026 08:34:54 +0530 Tue, 29 Sep 2026 08:34:56 +0530 TaxTMI RSS Generator Mandatory employee canteens: recoveries avoid GST, while input tax credit is limited to the employer-borne cost. https://www.taxtmi.com/highlights?id=104320 Employee recoveries for subsidised canteen meals provided under statutory obligations at factories, R&D facilities and corporate offices are treated as employer-employee contractual perquisites rather than supplies under section 7 of the CGST Act; GST is therefore not payable on those recoveries. Input tax credit on GST charged by the canteen provider is available where the facility is legally mandatory, because the proviso to section 17(5)(b) applies across that clause. Credit remains restricted to the employer-borne canteen cost, while the proportion attributable to employee meal recoveries is disallowed. Highlights GST Tue, 29 Sep 2026 08:34:54 +0530 https://www.taxtmi.com/highlights?id=104320