Employers' Canteen Food Recovery Is 'Supply of Service' Under Factories Act; GST Applicable on Nominal Deductions.

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Full Text of the Document

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....Levy of GST - recovery of nominal amount from the employees for making payment to the third-party service provider, providing food in canteen as mandated in the Factories Act, 1948 - The supply of food by the applicant is ‘Supply of Service’ by the applicant to their employees as the same is not a part of the employment contract and the canteen facility is provided as mandated under Factories Act. The nominal cost, which is recovered from the salary as deferred payment is ‘consideration’ for the supply and GST is liable to be paid. - AAR....