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2021 (9) TMI 1293 - AAAR - GSTLevy of GST - amount recovered from employee on account of third party canteen services provided by Company - obligation under Section 46 of the Factories Act - HELD THAT:- The appellant does not supply any goods or services to its employees against the amount collected from the employees. The appellant collects employees’ portion of amount and pays the consolidated total amount, which includes appellant’s share of amount also, to the Canteen Service Provider towards the foodstuffs provided to employees by the Canteen Service Provider. The appellant neither keeps any margin in this activity of collecting employees’ portion of amount nor makes any separate supply to the employees. Furthermore, it is not the appellant who is supplying the foodstuff or canteen service to its employees, but it is a third party who is supplying the foodstuff or canteen service to the employees of the appellant. As the appellant is not carrying out the said activity of collecting employees’ portion of amount to be paid to the Canteen Service Provider, for any consideration, such transactions are without involving any ‘supply’ from the appellant to its employees and is therefore not leviable to Goods and Services Tax - thus the Goods and Services Tax is not applicable on the collection, by the appellant, of employees’ portion of amount towards foodstuff supplied by the third party / Canteen Service Provider.
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