Input Tax Credit not allowed on canteen charges even though obligatory under any law and GST not payable on employee recovery of canteen charges

The Gujarat Authority for Advance Ruling ( AAR ) in the case of  M/s Tata Motors Limited  ( Applicant ) recently held that Input Tax Credit ( ITC ) on Goods & Services Tax ( GST ) charged by canteen service provider will not be available even when the same is obligatory in terms of Factories Act, 1948. A brief summary of the ruling is as below: Background The applicant is maintaining…