Case LawGUJ/GAAR/R/50/2020
Amneal Pharmaceuticals Pvt. Ltd ., In re
- Court:
- Authority for Advance Ruling
- Bench:
- Gujarat
- Date:
- July 30, 2020
- Type:
- Advance Ruling
- Members:
- Sanjay Saxena, Mohit Agrawal
Subject
GST is applicable on the amount recovered from employee on account of third party canteen services
ConsiderationBusiness
Summary
Whether GST is applicable on the amount recovered from employee on account of third party canteen services which is obligatory under Section 46 of the Factories Act, provided by company? Even though, there is no profit as claimed by the applicant on…
Judgement
The applicant submitted that they are a 100% EOU, carrying out canteen facilities through third party canteen service at their factory. More than 500 employees are working in the factory. The model that they have in their factory is that the food is being offered to employees on subsidized rate whereby the employee’s share of the cost is being deducted from their salary. 2. The applicant fur…