GST Win for Pharma Giant: AAR Allows ITC on Mandatory Canteen Services Under Factories Act

A pharmaceutical giant has won a GST case at the AAR, which ruled that the company is "eligible to claim ITC on mandatory canteen services" provided under the Factories Act. The ruling clarifies that since the provision of canteen services is a statutory obligation, the ITC on the GST paid for these services is not blocked. This decision provides significant relief to numerous companies that are required to provide canteen services to their employees.