GST SLAPPED ON CANTEEN FOOD

The Authority of Advance Ruling in Kerala has given a ruling to levy GST on the amount charged by employers for canteen food given to employees. On a plea made by Caltech Polymers, the Authority was asked to clarify whether recovery of food expenses from employees for the canteen provided by the company would come under the definition of outward supplies. The Authority said yes and ruled that it should be brought under the GST Act. Incidentally, it was not a business activity and the employer was doing it without any profit. The order could be taken as a precedent to bring many reimbursements under the GST, but it will be finally decided by the GST Council.