Levy of GST- In the instant case, the applicant (M/s. Emcure Pharmaceuticals Limited) provides canteen and bus transportation facility to its employees and that the canteen and bus transportation facility are part and parcel of the employment arrangement with the employees. 

Question on which Advance Ruling sought:

1. Whether the recoveries made by the Applicant from the employees for providing canteen facility to its employees are taxable under the GST laws?

2. Whether the free of cost bus transport facilities provided by the Applicant to its employees is taxable under the GST laws?

3. Without prejudice, even if GST is applicable in respect of employee recovery towards bus transportation facility, whether the Applicant would be exempted under the Sl. No. 15 of Notification No. 12/2017 – Central Tax (Rate) dated 28 June 2017?

4. Whether input tax credit is admissible to the Applicant for the GST charged/paid to the vendors on procurement of such services in terms of Sec 16 of CGST Act, as the same are used in relation to furtherance of business? If yes, would the same be restricted to the portion of cost borne by the Applicant?

Held that- 

1. GST, at the hands of M/s Emcure, is not leviable on the amount representing the employees portion of canteen charges, which is collected by M/s Emcure and paid to the Canteen service provider

2. GST, at the hands of M/s Emcure, is not leviable on free bus transportation facility provided to its employees.

3. ITC on GST paid on canteen facility is blocked credit under Section 17 (5)(b)(i) CGST Act and inadmissible to M/s Emcure.

4. ITC on GST paid on hiring of Bus, having approved seating capacity of more than 13 persons used for transportation of passengers, is admissible.