Does Incentives and Bonuses attract GST to employee by the employer?

[RameshBabu Kari]

Does Incentives and Bonuses attract GST to employee by an employer ?

[SHIVKUMAR SHARMA]

No, Incentives & Bonus not attract GST.If the same are given by Employer to Employee.

[RAMESH PRAJAPATI]

Incentives and bonus are paid to employees for the services rendered during their employment and as per schedule III of the CGST Act 2017, Services provided by an employee to the employer in the course of or in relation to his employment is not a supply of service. Therefore GST is not leviable on incentives and bonus.

[Himansu Sekhar]

No gst is payable

AI Summary

Employee services not a supply: incentives and bonuses paid by employers do not attract GST. Incentives and bonuses paid by an employer to an employee are remuneration for services rendered in the course of employment and are not treated as a taxable supply of services; therefore such payments do not attract GST and need not be treated as subject to GST collection or remittance.