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2022 (4) TMI 1337 - AUTHORITY FOR ADVANCE RULING, GUJARATTaxability of supply - outward supply or not - recovery of amount from employee on account of third party canteen service provided by assessee, which is obligatory under section 46 of Factories Act, 1948 - HELD THAT:- Cadmach has arranged a canteen for its employees, which is run by a Canteen Service Provider. As per their arrangement, part of the Canteen charges is borne by Cadmach whereas the remaining part is borne by its employees. The said employees’ portion canteen charges is collected by Cadmach and paid to the Canteen Service Provider. Cadmach submitted that it does not retain with itself any profit margin in this activity of collecting employees’ portion of canteen charges. This canteen service facility provided by Cadmach to its employees cannot be accorded as an activity made in the course or furtherance of business, to deem it a Supply by Cadmach to its employees. GST, at the hands of the Cadmach, is not leviable on the amount representing the employees portion of canteen charges, which is collected by Cadmach and paid to the Canteen service provider.
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