Levy of GST— In the instant case, the applicant submitted that it provides canteen facilities to the employees of the company, the applicant has entered into contract with 3rd party service vendor, i.e., M/s Shashi Catering Services Private Limited.

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

Question on which Advance Ruling sought:

1. Whether GST would be payable on nominal & subsidized recoveries made by the Applicant from its employees towards -

(i) Provision of canteen facility by 3rd party service provider to Applicant's employees at Applicant's premises.

(ii) Provision of bus transportation facility by 3rd party service provider to Applicant's employees; and.

2. If the answer to any of the question above is yes, what is the applicable rate of GST thereupon?

Held that— 

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