AAR, ITC allowed on canteen facility for direct employees, limited to employer’s cost: Case of Amneal Pharmaceuticals Private Limited , AAR Gujarat Ruling Dated 21st March 2025. AAR ruled that Input Tax Credit (ITC) will be available to the applicant on GST charged by the service provider in respect of canteen facility provided to its direct employees working in their factory, in view of the provisions of Section 17(5)(b) as amended. The ITC will be restricted to the extent of the cost borne by the applicant for providing canteen services to its direct employees, but disallowing proportionate credit to the extent embedded in the cost of goods recovered from such employees. (AAR Gujarat Ruling Dated 21/03/2025)