Q(1) Whether the subsidized deduction made by the Applicant from the Employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Rajasthan Goods and Service Tax Act, 2017. If yes, -Whether GST would be leviable in cases where nominal amount will be deducted from the salary of the employees by the Applicant? -Whether GST would be leviable in cases where nominal amount is recovered from the Manpower supplier in case of contractual employees?
Ans: Yes
Q(2) Whether ITC of the GST charged by the Canteen Service Provider would be eligible for availment to the Applicant?
Answer : Input Tax Credit will not be available to the Applicant on GST charged by the canteen service provider, in terms of provisions of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended vide Notification No. 20/2019-C.T. (Rate), dated 30-09-2019, as discussed in para 7 above.