Dear Sir,
Mr.X (employee) is working in Y Ltd (employer). Y bought car from Z Ltd under lease which is group company. Now X got car from Y.car price ₹ 8.11 lakh inclusive of VAT 14.5% (Rs95623). Mr.X is leaving the company and there is no surrender option. Mr.x compulsory to buy the car the invoice price ₹ 7.64 and charging GST @ 29% ₹ 2.21 lakh on Fair Market Value. Is liable to pay GST by employee? if yes, what is the applicable rate under GST law. Pls clarify.
GST Applicability Debated on Employee Car Purchase from Employer; Is It a Business Activity? An employee is required to purchase a car from their employer, which was initially leased from a group company. The car's invoice includes GST at 29% based on its fair market value. Various respondents in the discussion argue whether GST applies to this transaction. Some suggest GST is applicable as it involves a business transaction, while others argue it does not qualify as a business activity under the GST Act. The debate references legal precedents and interpretations of the definition of business and supply under GST law. Several participants express facing similar issues and seek clarity on GST applicability. (AI Summary)
TaxTMI 
TaxTMI 
