Maharashtra GST Advance Ruling Withdrawal: Mukand Limited Case
The Authority for Advance Ruling allowed the applicant to withdraw their request, meaning no decision was made on employee-related GST matters.
- Ruling
- NO.GST-ARA- 16/2022-23/B-49 Mumbai, dt. 24/03/2026
- Dated
- 24 Mar 2026
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Mukand Limited asked about GST on canteen, transport, and insurance services.
- The company also questioned Input Tax Credit eligibility for these facilities.
- The applicant voluntarily withdrew their request before a decision was reached.
- The Authority issued no ruling on the taxability of these services.
In short
Mukand Limited asked the Maharashtra Authority for Advance Ruling (AAR) to clarify GST rules for employee benefits like canteen meals, transport, and insurance. They also wanted to know if they could claim Input Tax Credit (ITC) on these costs. However, the company decided to withdraw its application before the authority could provide an answer.
What has changed
How it worked before
Businesses often look to advance rulings to understand if providing employee perks like canteen facilities or transport attracts GST or allows for tax credits.
What has changed
Nothing changed because the application was withdrawn. The authority did not issue a decision, so the tax treatment of these employee services remains exactly as it was before the request was filed.
Who this affects
Manufacturing businesses providing employee facilities like canteens, transport, or medical insurance.
An example
Imagine a factory owner who wants to know if they can claim ITC on canteen services. They might look at this order hoping for an answer. Because Mukand Limited withdrew their request, this order does not tell the factory owner whether they can claim the credit. The owner must still rely on existing GST laws or seek their own ruling.
What you should do
Do not rely on this order for tax planning. Because the case was withdrawn, it provides no legal guidance or precedent. You should consult with your tax advisor to determine the correct GST treatment for your specific business expenses.
If you do nothing
If you assume this order supports a specific tax position, you risk miscalculating your GST liability. Tax officers are not bound by withdrawn applications and may challenge your tax filings if they disagree with your interpretation. Incorrectly claiming credits or failing to pay tax can lead to penalties and interest charges.
The terms explained
- Input Tax Credit
- A system that allows businesses to reduce the tax they pay on their final sales by the amount of tax they already paid on their business purchases.
- Advance Ruling
- A formal decision from tax authorities on how GST laws apply to a specific business situation.
- Supply
- Any form of sale, transfer, or exchange of goods or services made for a price in the course of business.
The ruling in detail
Authority for Advance Ruling
M/s. Mukand Limited
NO.GST-ARA- 16/2022-23/B-49 Mumbai, dt. 24/03/2026 · Maharashtra
Questions before the authority
- Whether GST is applicable on recovery of nominal amount for availing the facility of Canteen at the factory premises when it is not a supply as per clause 1 of Schedule III of CGST Act;
- Whether ITC is available on GST charged for the provision of Canteen services for the employees at the factory premises
- Whether GST is applicable on payment of notice pay by an employee to the Applicant-employer in lieu of notice period, under clause 5(e) of Schedule II of CGST Act.
- Whether GST is applicable on the amount of premium of Medical Insurance Policy for the employees and their dependents at actuals covered under the HR Policy;
- Whether GST is applicable on recovery of nominal amount for availing the facility of transportation to and from the factory premises when it is not a supply;
- Whether Input Tax Credit is available on GST charged for transportation facility provided to the employees of the Applicant-Company;
- Whether Input Tax Credit is available on GST charged for gardening expenses of the Applicant-Company.
Facts
The applicant is engaged in the manufacture of steel products and industrial machinery. They sought an advance ruling regarding the taxability of various employee-related facilities, including canteen services, transportation, notice pay, medical insurance, and gardening expenses, as well as the availability of Input Tax Credit on these services.
Ruling
The Authority for Advance Ruling did not decide on the merits of the questions raised. The applicant voluntarily requested to withdraw their application, and the Authority allowed the withdrawal without going into the merits of the case.
Reasoning
The applicant submitted a request via email dated 16.03.2026 stating that after internal discussions, they decided not to pursue the matter. Consequently, the Authority allowed the withdrawal of the application under the provisions of the CGST Act and MGST Act. No substantive ruling was provided on the questions asked.
Provisions relied on
- Section 98 of the Central Goods and Services Tax Act, 2017
For the practitioner
This order provides no legal precedent or guidance on the taxability of employee perquisites or the availability of Input Tax Credit for the listed services. It serves only as a record of the **voluntary withdrawal** of the application by the taxpayer. Practitioners should note that the questions remain **unanswered** by this authority.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/3-withdrawn_order_in_case_of_mukand_limited.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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