TMI Blog2021 (9) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... margin in this activity of collecting employees portion of amount nor makes any separate supply to the employees. Furthermore, it is not the appellant who is supplying the foodstuff or canteen service to its employees, but it is a third party who is supplying the foodstuff or canteen service to the employees of the appellant. As the appellant is not carrying out the said activity of collecting employees portion of amount to be paid to the Canteen Service Provider, for any consideration, such transactions are without involving any supply from the appellant to its employees and is therefore not leviable to Goods and Services Tax - thus the Goods and Services Tax is not applicable on the collection, by the appellant, of employees port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories Act, provided by company ? 3. The GAAR, vide Advance Ruling No. GUJ/GAAR/R/50/2020 dated 30.07.2020 inter-alia discussed the meanings of the terms outward supply , business and consideration , referred to clause 6 of Schedule II of the Central Goods and Services Tax Act, 2017 (herein after referred to the CGST Act, 2017 ) and the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the GGST Act, 2017 ), and answered the question raised by the appellant in affirmative i.e. it held that Goods and Services Tax is applicable on the amount recovered from employees on account of third party canteen services. 4.1 Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as provided / arranged a canteen for its employees, which is run by a third party i.e. Canteen Service Provider. The Canteen Service Provider supplies foodstuffs to the employees of the appellant against consideration and pays applicable Goods and Services Tax thereon. However, in respect of the consideration being paid to the Canteen Service Provider, as per the agreed arrangements between the appellant and its employees, part of that consideration / amount is borne by the appellant whereas the remaining part is borne by its employees. The employees portion of consideration / amount to be paid to the Canteen Service Provider is collected by the appellant and the consolidated amount of consideration (employees portion as well as appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the premises that the appellant is supplying food to its employees , which would be covered under the definition of the term business under Section 2(17) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017. However, the appellant has asserted before us that it is collecting the portion of employees share and paying to Canteen Service Provider, a third party, which is nothing but the facility provided to employees, without making any profit and working as mediator between employees and the contractor / Canteen Service Provider. Under these circumstances, we hold that the Goods and Services Tax is not applicable on the activity of collection of employees portion of amount by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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