TMI Blog2018 (4) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of food to its employees, there is "supply" as provided in Section 7(1 )(a) of the GST Act, 2017. The applicant would definitely come under the definition of "Supplier" as provided in sub-section (105) of Section 2 of the GST Act, 2017. The recovery of food expenses from the employees for the canteen services provided by company would come under the definition of 'outward supply' as defined in Section 2(83) of the Act, 2017, and therefore, taxable as a supply of service under GST. - Application dated 30.12.2017 - CT/531/18-C3 - Dated:- 26-3-2018 - Senthil Nathan S, IRS Member GST and N. Thulaseedharan Pillai Member SGST ORDER M/s. Caltech Polymers Pvt. Ltd., Malappuram (hereinafter called the applicant or the Company) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered from the employees, as a deduction from their monthly salary, in proportion to the foods consumed by them. f) The company does not make any profit while recovering the cost of the food items, from the employees. Only the actual cost incurred for the food items is recovered from the employees. 4. The company is of the opinion that this activity does not fall within the scope of 'supply', as the same is not in the course or furtherance of its business. The company is only facilitating the supply of food to the employees, which is a statutory requirement, and is recovering only the actual expenditure incurred in connection with the food supply, without making any profit. 5. The company also referred to the Mega Exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a pecuniary benefit: (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); From the plane reading of the definition of business , it can be safely concluded that the supply of food by the applicant to its employees would definitely come under clause (b) of Section 2(17) as a transaction incidental or ancillary to the main business. 10. Schedule II to the GST Act describes the activities to be treated as supply of goods or supply of services. As per clause 6 of the Schedule, the following composite supply is declared as supply of service. supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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