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TMI Blog2025 (4) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... istered under the Factories Act, 1948. 3. The applicant provides canteen facility to its employees at their Bavla factory. The primary reasoning for provision of the aforementioned facility is that in terms of section 46 of the Factories Act, 1948, read with rule 72 of Gujarat factories rule, 1963, they are mandated to provide and maintain canteen for their employees. 4. The applicant has entered into an agreement with a canteen service providers [for short - CSP] for provision of canteen facilities for their employees. As per the agreement, the CSP prepares the food for the employees at the factory and serves the same. The CSP raises invoices along with applicable GST (if registered) for its canteen services. The invoices are based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72 of Gujarat Factories rules, 1963. 7. Personal hearing was granted on 23.01.2025 wherein Shri Karan Rajvir appeared on behalf of the applicant and reiterated the facts as stated in the application. Consequent to the personal hearing, the applicant vide email dated 03.02.2025, submitted a copy of the canteen policy and agreement with CSP. Discussion and findings 8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. We have considered the submissions made by the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] (c) the activities specified in Schedule I, made or agreed to be made without a consideration; [ **** ] (d) [ **** ]. [(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.] (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.] Circular No. 172/04/2022-GST S.No. Issue Clarification 3. Whether the proviso at the end of clause (b) of sub-section (5) of section 17 of the CGST Act is applicable to the entire clause (b) or the said proviso is applicable only to sub-clause (iii) of clause (b)? 1. Vide the Central Goods and Service Tax (Amendment Act) 2018, clause (b) of sub-section (5) of section 17 of the CGST Act was substituted with effect from 01.02.2019. After the said substitution, the proviso after sub clause (iii) of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1948 read with Gujarat Factories Rules, 1963 can be availed by the applicant. In this connection, before proceeding further, certain factual aspects deserve to be mentioned, though at the cost of repetition are viz * that the employees of the applicant, working in its factory premises exceed 250; * that section 17 (5) (b) ibid, was amended on 1.2.2019, and is reproduced supra; * that the applicant is mandated vide section 46 of the Factories Act, 1948 read with Gujarat Factories Rules, 1963 to provide canteen facility to its employees within the factory premises * that circular No. 172/4/2022-GST clarifies that post substitution, effective from 1.2.2019, based on the recommendation of the GST council in its 28th meeting, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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