ITC available on Food and Beverages as Canteen Facilities is Obligatory

The article from Taxscan discusses a recent ruling by the Authority for Advance Rulings (AAR) stating that Input Tax Credit (ITC) is available on food and beverages provided as canteen facilities under the Factories Act. This decision clarifies that expenses for such facilities are eligible for ITC if they are mandated by law, as per the Factories Act, which requires employers to provide canteen facilities. This ruling is crucial for businesses as it affirms that compliance with legal obligations can support claims for ITC on related expenses.