AAR Rules ITC Available on GST Charged for Employee Canteen Facilities, Excluding Contract Workers

The AAR (Authority for Advance Ruling) ruled that Input Tax Credit (ITC) on GST charged for employee canteen facilities is available, but only for employees and not for contract workers. The ruling clarified that ITC cannot be claimed for services provided to contract workers, as they are not considered employees under GST law. This decision highlights the distinction between employees and contractors in terms of tax credit eligibility, affecting companies that provide canteen facilities to both groups. The ruling aims to ensure compliance and proper tax credit utilization in line with GST regulations.