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GST, at the hands on the applicant, is not leviable on the amount representing the employees portion of canteen charges, which is collected by the applicant and paid to the Canteen service provider.

Authority for Advance Ruling —– Canteen Facility --– The applicant is providing canteen facility to their employee as it is mandatory as per Section 46 of the Factories Act, 1948. This facility provided to employee without making any profit and working as mediator between employee and contractor of canteen service provider. They are collecting amount from the employee and paid to the contractor of canteen. The applicant sought advance ruling as to whether it is required by the applicant to charge GST on the amount collected from the employees towards canteen charges. Held that:- The Hon’ble Authority for Advance Ruling declared that the GST at the hands on the applicant, is not leviable on the amount representing the employees portion of canteen charges, which is collected by the applicant and paid to the Canteen service provider.
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