9911796707
TMI Blog2021 (1) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... not being carried out as a business activity. It is according to the provisions of the Factories Act, 1948 - From the plane reading of the definition of business , it can be safely concluded that the supply of food by the applicant to its employees would definitely come under clause (b) of Section 2(17) as a transaction incidental or ancillary to the main business. Even though, there is no profit as claimed by the applicant on the supply of food to its employees, there is a supply , as provided in Section 7(1)(a) of the CGST Act, 2017. The applicant would definitely come under the definition of Supplier , as provided in sub-section (105) of Section 2 of the CGST Act, 2017 - Since the applicant recovers the cost of food from its emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mega Exemption Notification No.25/2012-ST dated 20.06.2012 issued by the Govt. of India whereby services in relation to supply of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 was exempted under the Service Tax law marked with Exhibit-A. Therefore, the basis and concept of levy of tax should not be changed. 4. Further, the applicant is of opinion that this activity does not fall within the scope of supply as the same is not in the course or furtherance of its business. They only facilitating the supply of food to the employees, which is a statutory requirement, and is recovering only employee share as actual expenditure incurred in connection with the food supply, without making any profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. In this case, a moot point is to be decided as to whether GST is applicable on the amount recovered from employee on account of third party canteen services which is obligatory under Section 46 of the Factories Act, provided by the company. 10. We note that the applicant is a 100% EOU. More than 500 employees are working in the factory. They are providing canteen services through third party exclusively for their employees in the factory. They offered food to their employees on subsidized rate whereby the employee s share of the cost is being deducted from their salary. The applicant has further submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is-for cash, deferred payment or other valuable consideration. 14. Even though, there is no profit as claimed by the applicant on the supply of food to its employees, there is a supply , as provided in Section 7(1)(a) of the CGST Act, 2017. The applicant would definitely come under the definition of Supplier , as provided in sub-section (105) of Section 2 of the CGST Act, 2017. 15. The term 'consideration' is defined in Section 2(31) of the CGST Act, 2017, which is extracted below: 'consideration' in relation to the supply of goods or serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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