Rent collection from employee

[yateen vyas]

1. A manufacturer unit has given residential accomodation to employee and rent is also recovered from them what will be GST impact on this.

2. Same accomodation is also given to some teacher who are also serving in a school which is run by unit for all people.

[prakash kumar]

Dear Friend,

Primary condition for applicability of GST is:

(1) there must be supply

(2) to any other person

(3) there must be consideration.

Obviously in part 1 of your question: there is supply, for a consideration. Further employee is a separate person than the employer. So, GST is applicable.

Same logic can be given in part 2 of your question as well.

AI Summary

Supply for consideration: rent charged for employer provided residential accommodation is subject to GST when charged to employees. GST applies to rent recovered for employer provided residential accommodation because the transaction constitutes a supply of accommodation to any other person for consideration; employees and teachers are distinct persons so rent recovery is taxable.