GST AAR ANDHRA PRADESH:- GST NOT APPLICABLE ON AMOUNT RECOVERED FROM EMPLOYEES FOR CANTEEN & TRANSPORT FACILITY

GST AAR ANDHRA PRADESH:- GST NOT APPLICABLE ON AMOUNT RECOVERED FROM EMPLOYEES FOR CANTEEN & TRANSPORT FACILITY

ANDHRA PRADESH STATE

AUTHORITY FOR ADVANCE RULING

Case Name: Brandix Apparel India Private Limited (GST AAR Andhra Pradesh)

Appeal Number: Advance Ruling No. AAR 02/AP/GST/2023

Date of Judgement/Order: 21st March 2023

The main business of the applicant is manufacture of apparel and they are not engaged in the business of bus transportation. The transportation services is not a supply for the applicant made in the course or furtherance of business and the recoveries made by the applicant from their employees does not fall under the definition of supply under Section 7. Further, the transportation services are being supplies by the third-party to the applicant and they are receiver and not supplier of the same. Therefore, it can be concluded that the GST is not applicable for the recoveries from the employees for the transportation services provided to them.

RULING

(Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017)

Question 1: Whether GST would be applicable on the amount recovered from employees for canteen facility provided to them?

Answer: Negative

Question 2: Whether GST would be applicable on the amount recovered from employees for transportation facilities provided to them?

Answer: Negative

Note: Under Section 100 of the APGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under Section 99 of APGST Act, 2017, with in a period of 30 days from the date of service of this order.