No GST on Canteen Charges Recovered from Staff: AAR

GST will not be levied on the amount paid by employees for availing canteen facilities provided by their employers, the AAR has ruled. Tata Motors had approached the Gujarat bench of Authority for Advance Ruling (AAR) seeking a ruling on whether Goods and Services Tax (GST) is applicable on the nominal amount recovered by it from employees for the usage of canteen facility.

The company also sought a ruling on whether input tax credit (ITC) is available on GST charged by the service provider on the canteen facility provided to employees working in the factory.

In its ruling, the AAR observed that Tata Motors has arranged a canteen for its employees, which is run by a third party canteen service provider.

As per their arrangement, part of the canteen charges is borne by its Tata Motors whereas the remaining is borne by its employees. –PTI

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