The Andhra Pradesh Authority for Advance Ruling (AAR) has held that no Goods and Service Tax (GST) would be applicable upon the amount recovered from employees for canteen and transportation facilities. The applicant Brandix Apparel India Private Limited was engaged in the business of manufacture of apparels and export of the same outside India. The applicant had hired a third-party contractor for providing canteen services to the employees in the factory. The third-party contractor raised an Invoice on the company for provision of canteen services and recovered the amount form the employees for provisions teen facility.
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