No GST on nominal canteen expense paid by staff.
Authority for Advance Ruling (AAR) has ruled that wherever canteen expenses are majorly taken care of by the employer and the employees are required to pay just a nominal amount towards the same, no Goods and Services Tax (GST) would be charged on such recoveries. Simply put, no GST can be charged on the nominal payment made by staff for using canteen facilities provided by their employers. Tata Motors had approached the Gujarat bench of AAR for clarification whether GST is applicable on the nominal payment recovered by the Company from its staff for availing canteen facility.
By Dayanand Mangaonkar