Companies will not be required to pay GST on employees’ share of canteen charges collected by them and paid to the service provider. However, they will get input tax credit (ITC) on the on GST charged by the service provider in respect of canteen facility provided to its direct employees working in their factory, as per two rulings by Gujarat Authority for Advance Rulings (GAAR) and one by Andhra Pradesh AAR (APAAR).
Source a2ztaxcorp
