2021 (1) TMI 432

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eing deducted from their salary. 2. The applicant further submitted that in short, they are collecting and paying the portion of the employee to third party (i.e. Canteen service Provider). Hence, this is not their main object of business. This is nothing but the facility provided to employee without making any profit and working as a mediator between employee and contractor of canteen service provider. Therefore, in their view, no GST shall be payable by employee to company on the subsidized value of food. 3. Further, the applicant has referred Sr. No. 19 of the Mega Exemption Notification No.25/2012-ST dated 20.06.2012 issued by the Govt. of India whereby services in relation to supply of food or beverages by a canteen maintained in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ated in the Application and as mentioned herein above. DISCUSSION & FINDINGS: 8. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. In this case, a moot point is to be decided as to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y to sub-clause (a); ... From the plane reading of the definition of "business", it can be safely concluded that the supply of food by the applicant to its employees would definitely come under clause (b) of Section 2(17) as a transaction incidental or ancillary to the main business. 13. Schedule II to the CGST Act, 2017 describes the activities to be treated as supply of goods or supply of services. As per clause 6 of the Schedule, the following composite supply is declared as supply of service: "supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or se....