Deduction of nominal amount from employees' salaries for food not a supply under CGST Act. ITC available on canteen services.

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....The Advance Ruling Authority (AAR) considered whether deducting a nominal amount from employees' salaries for food provided in a factory constitutes a 'supply' u/s 7 of the CGST Act, 2017. It was held that this deduction does not qualify as a supply. The ruling on GST applicability on the deducted amount was deemed irrelevant due to the previous determination. Regarding Input Tax Credit (ITC) on GST charged by the canteen service provider, ITC will be available only up to the cost borne by the applicant, as canteen facilities are mandatory u/s Factories Act, 1948. The AAR clarified that the ITC will be limited to the appellant's expenses for food and beverages for employees in the factory.....