AAR, GST Applicable on Nominal Canteen, Transport Recoveries from Employees: Case of Kion India Pvt Ltd, AAR Maharashtra Ruling Dated 27th March 2025. AAR ruled that the deduction of a nominal amount by the Applicant from the salary of the employees who are availing the facility of food provided in the factory premises would be considered as a ‘Supply of Service’ by the Applicant under the provisions of Section 7 of CGST Act. The GST is applicable on the nominal amount to be deducted front the salaries of employees. The ITC is not available to the Applicant on GST charged by the Canteen Service Provider for providing the catering services.
— AAR also ruled that the deduction of nominal amount by the Applicant from the salary of the employees who will be availing the non-air-conditioned bus transportation facility proposed to be provided by the prospective Transport Service Provider will be construed as ‘supply of service’ by the Applicant under the provisions of Section 7 of CGST Act. The GST is applicable on the nominal amount to be deducted from the salaries of employees. The ITC will be available to the Applicant on GST that would be charged by the Transport Service Provider for providing the non air- conditioned bus transportation services. (AAR Maharashtra Ruling Dated 27/03/2025)