Oct 12, 2022
Employers will no longer require to deduct GST on the subsidised meal cost recovered from their employees, the Authority of Advance Ruling (AAR) said on Tuesday. The Gujarat bench of the AAR gave the ruling after Zydus Lifesciences approached the authority to seek clarification on whether GST would be levied on the amount deducted from the salaries of its employees who avail food in the factory/corporate office. Zydus Lifesciences has entered into an agreement with the canteen service provider according to which it pays full amount to the service provider for the food served during a prescribed period on behalf of the employees. A pre-determined percentage of the amount paid by Zydus Lifesciences is recovered from the employees and the balance amount is borne by the company.
