The Appellate Authority for Advance Ruling clarified that the applicant, Caltech Polymers Pvt. Ltd, recovered food expenses from its employees for the canteen services it provided under the provisions of the Factories Act. Although the company had made it clear that no profit margins were involved, the AAAR ruled that the supply of food would come under the definition of ‘supply’ as per the GST Act and, hence, would be taxable.
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