GST not Applicable on Amount Recovered for Canteen Facility from Employees: AAR

The Authority for Advance Rulings (AAR) has ruled that GST does not apply to amounts recovered from employees for canteen facilities provided by an employer. This decision is based on the premise that the canteen facility is considered an employee welfare measure rather than a supply of goods or services. Thus, the amount recovered for such facilities falls outside the GST ambit. The AAR highlighted that since the service is rendered for the welfare of employees and not in the course of business transactions with external parties, it does not constitute a taxable supply.