TaxTMI 
TaxTMI 
2025 (4) TMI 221
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.... more than 250 employees and is also registered under the Factories Act, 1948. 3. The applicant provides canteen facility to its employees at their Bavla factory. The primary reasoning for provision of the aforementioned facility is that in terms of section 46 of the Factories Act, 1948, read with rule 72 of Gujarat factories rule, 1963, they are mandated to provide and maintain canteen for their employees. 4. The applicant has entered into an agreement with a canteen service providers [for short - CSP] for provision of canteen facilities for their employees. As per the agreement, the CSP prepares the food for the employees at the factory and serves the same. The CSP raises invoices along with applicable GST (if registered) for its ca....
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....oyees where the canteen facility is mandatory in terms of section 46 of the Factories Act, 1948 read with rule 72 of Gujarat Factories rules, 1963. 7. Personal hearing was granted on 23.01.2025 wherein Shri Karan Rajvir appeared on behalf of the applicant and reiterated the facts as stated in the application. Consequent to the personal hearing, the applicant vide email dated 03.02.2025, submitted a copy of the canteen policy and agreement with CSP. Discussion and findings 8. 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 me....
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....eemed to take place from one such person to another;] (b) import of services for a consideration whether or not in the course or furtherance of business; 2 [and] (c) the activities specified in Schedule I, made or agreed to be made without a consideration; [ **** ] (d) [ **** ]. [(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.] (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government....
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....aking an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.] Circular No. 172/04/2022-GST S.No. Issue Clarification 3. Whether the proviso at the end of clause (b) of sub-section (5) of section 17 of the CGST Act is applicable to the entire claus....
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....ction 17 of the CGST Act. 11. The facts having been enumerated supra we do not intent to repeat the same for the sake of brevity. 12. The issue to be decided is whether Input Tax Credit of GST charged by the CSP for the canteen services for its employees where the canteen facility is mandatory in terms of Section 46 of the Factories Act, 1948 read with Gujarat Factories Rules, 1963 can be availed by the applicant. In this connection, before proceeding further, certain factual aspects deserve to be mentioned, though at the cost of repetition are viz • that the employees of the applicant, working in its factory premises exceed 250; • that section 17 (5) (b) ibid, was amended on 1.2.2019, and is reproduced supra....