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2022 (10) TMI 305 - AAR - GSTApplicability of Goods and Services Tax - Canteen services - collection of employees' portion of consideration by the appellant - appellant has a manufacturing setup and maintains/manages industrial canteen for providing food and refreshments to its employees - HELD THAT:- The applicant 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 the applicant whereas the remaining part is borne by its employees. The said employees portion canteen charges is collected by the applicant and paid to the Canteen Service Provider. The applicant submitted that it does not retain with itself any profit margin in this activity of collecting employees' portion of canteen charges also do not charge any mark up therein. The applicant as a part of its HR policy is providing bus transportation facility at subsidized rate to the employees of the company. The applicant is not supplying any bus transportation service to its employees in the instant case. Further Bus transportation service is also not the output service of the applicant since they are not in the business of providing transport service. Rather, this bus transportation facility is provided, to the employees by the third party vendors and not by the applicant. Therefore in the subject case, the applicant is not provider of bus transportation facility to its employees, in fact the applicant is a receiver of such services. The applicant is providing transport and canteen facility to its permanent employees (on payroll) as per contractual agreement between employer employee relationships - 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. As cited in the referred provisions of scheduled III and the clarification issued vide Circular No. 172/04/2022-GST dated 06-07-22, 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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