Authority for Advance Ruling – GST on recoveries made from the employees towards providing canteen facility, bus facility and on notice pay – The applicant is engaged in developing, manufacturing and marketing of pharmaceutical products, provides canteen and bus transportation facility to its employees. The applicant sought an Advance Ruling as to whether the GST would be payable on recoveries made from the employees towards providing canteen facility at subsidized rates in the factory and office; whether the GST would be payable on the recoveries made from the employees towards providing bus transportation facility, if yes, whether the applicant is exempted under Notification No. 12/2017 Central Tax (Rate); whether the GST would be payable on the notice pay recoveries made from the employees on account of not serving the full notice period. The authority observed that the partial amounts recovered by the applicant from its employees in respect of use of such canteen facility are a part of the amount paid to the third party vendors which has already suffered GST. Further, the partial amounts recovered by the applicant from its employees in respect of use of such bus transportation facility are a part of the amount paid to the third party vendors which has already suffered GST. Further, recovery of notice pay from dues of employee / payment of notice pay by the employee who could not serve the notice for the period as per contractual agreement / appointment letter does not amount to supply.

Held that:- The Hon’ble Authority for Advance Ruling held answer in negative for all the questions.