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2018 (4) TMI 582

able under Goods & Service Tax Act? - Held that: - 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 - Even though there is no profit as claimed by the applicant on the supply 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 definit .....

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red for preparing the food items are purchased by the Company directly from the suppliers. d) The number of times, the Canteen facility is availed, each day, by the employees is tracked on a daily basis. e) Based on the details above, the expenditure incurred by the Company on the vegetables and other items required for preparation of food is recovered 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' .....

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om service tax. But, there is no similar provision under the GST laws. 9. The term "business" is defined in Section 2(17) of the GST Act, which reads like this:- "business" includes:- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for 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 t .....

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he recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply. Since the applicant recovers the cost of food from its employees, there is consideration as defined in Section 2(31) of the GST Act, 2017. 12. In the light of the aforesaid circumstances, we rule as under. RULING It is hereby clarified that 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 S .....

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