Whether reimbursement of food expenses from employees for the canteen provided by company is covered under outward supply taxable under GST Act ?
Registered person is providing canteen services exclusively for their employees. The canteen running expenses are recovered from its employees without any profit margin.
The service provided to the employee is according to the provisions of the Factories Act, 1948 as section 46 of the said Act requires any factory employing more than 250 workers to provide canteen facility to its employees.
Whether the registered person's activity will qualify as Supply irrespective of the fact that registered person is only facilitating the supply of food to the employees, which is a statutory requirement and is recovering only the actual expenditure incurred in connection with the food supply, without making any profit ?