Kerala firms with canteens to now pay GST on employee food bills

Employers in Kerala who provide canteen facilities to employees will now have to pay the goods and services tax (GST) on food and beverages the latter buy. Appellate Authority of Advanced Ruling (AAAR) in the state has upheld the Advance Authority for Ruling (AAR) order to impose the tax.

Experts said this will force companies to re-evaluate what facilities they provide employees. The central government had earlier said any service made by an employer to an employee, as part of a contractual agreement, would not come under the GST ambit.

“It is critical for companies to evaluate what benefits they