GST – Canteen facility to the employees of Suzuki Motor Gujarat – Deduction made from the employees availing food in the factory would not be considered as “supply” under Section 7 of the CGST Act, 2017.
More than 250 workers are working in the factory of Suzuki Motor Gujarat Private Limited. As per section 46 of the Factories Act, 1948, the company is required to maintain a canteen for its employees and provide canteen facility at subsidized rates in its factory premises.
On 15.7.2020 the Company has given agreement to canteen service provider for food and beverages to the employees as per its Meal Policy dated 1.4.2016. The Canteen Service Provider is issuing tax invoices to the applicant and charging GST at 5%. The applicant is raising monthly invoice and charging 5% GST on the nominal amount recovered for the meals provided to its employees.
Canteen Facility is in the nature of perquisite and does not qualify as “supply” for GST. Second issue of admissibility of ITC on the service of Canteen Service Provider, third issue of admissibility of ITC in respect of canteen facility provided to employees on deputation, business travel and temporary workers and fourth issue of admissibility of ITC on the kitchen utensils and equipments purchased for providing canteen facility to the employees.
Suzuki Motor Gujarat Pvt Ltd.pdf (gstcouncil.gov.in)
Gujarat Authority for Advance Ruling Goods and Service Tax, Ahmedabad – Advance Ruling dated 3.2.2024 in the case of Ms. Suzuki Motor Gujarat Pvt Ltd.
