The Gujarat Authority of Advance Ruling (AAR) ruled that no GST is levied on the amount representing employees’ portion of canteen charges. The Applicant, M/s Tata Motors Ltd. is recovering nominal amount on monthly basis to ensure the use of canteen facility only by authorized persons/employees and expenditure incurred towards canteen facility borne by Applicant is part and parcel of cost to the company. In a press release dated 10.07.2017 also, it was clarified that supply by the employer to an employee in terms of contractual agreement of employment (part of salary/CTC) is not subject to GST. Once an employee ceases to be in employment with Applicant, he/she is not authorized to use the canteen facility. In other words, the employer-employee relationship is a must to avail this facility.
Source Taxscan
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