Levy of GST— In the instant case, the applicant is has sought Ruling on whether it is required to charge GST on the amount collected from its employees towards canteen charges. Applicant is providing canteen facility to their employees at a concessional amount and recovering a part of the total cost of food and beverages from its employees and the balance cost is borne by applicant. The applicant does not retain any profit margin in the activity of collecting employee’s portion of canteen charges.

Question on which Advance Ruling sought:

Whether GST, at the hands of the applicant, is leviable on the amount representing the employees portion of canteen charges, which is collected by the applicant from employees and paid to the Canteen Service Provider.

The applicant has arranged a canteen for its employees, which is run by a Canteen Service Provider. As per their arrangement, part of the Canteen charges is borne by Intas whereas the remaining part is borne by its employees. The said employees’ portion canteen charges is collected by Intas and paid to the Canteen Service Provider. Intas submitted that it does not retain with itself any profit margin in this activity of collecting employees’ portion of canteen charges.

Held that— GST is not leviable on the amount representing the employees portion of canteen charges, which is collected by applicant and paid to the Canteen service provider.