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2022 (10) TMI 304 - AAR - GSTSupply or not - subsidized deduction made by the Applicant from the employees who are availing food in the factory/corporate office - levy of GST on the amount deducted from the salaries of its employees - Section 7 of Central Goods and Service Tax Act, 2017 and Gujarat Goods and Service Tax Act, 2017 - HELD THAT:- It clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. M/s Zydus has arranged a canteen facility for its employees, which is run by a Canteen Service Provider. As per their arrangement, part of the Canteen charges is borne by M/s Zydus whereas the remaining part is borne by its employees. The said employees' portion canteen charges is collected by M/s Zydus and paid to the Canteen Service Provider. M/s Zydus submitted that it does not retain with itself any profit margin in this activity of collecting employees' portion of canteen charges. The applicant is providing canteen facility to its permanent employees (on payroll) as per contractual agreement between employer-employee relationship - The Provision of Services of transports and canteen facility to its employees is as per the contractual agreement between the employee and the employer in relation to the employment. The provision of the services of transportation and canteen facility cannot be considered as supply of goods or services and hence cannot be subjected to GST.
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