TaxTMI 
TaxTMI 
Sir
Benefit of Canteen and Transport facility extended to Contract worker by an employer is subject to GST ?
If yes ,, whether employer need to pay GST on RCM Basis .
Regards
CANTEEN AND TRANSPORT FACILITY TO CONTRACT LABOURS
19 Nov 2017 
4 Replies 
3537 Views Asked by
GST on manpower supply: canteen and transport included in the service; reverse charge may apply for unregistered suppliers.
Canteen and transport provided under a manpower supply agreement form part of the manpower supply service and are not separate taxable supplies; the manpower supply attracts GST. If the supplier is registered, GST is charged on invoice; if unregistered, the recipient may be liable under the reverse charge mechanism. Valuation principles require inclusion of expenses borne by the recipient that should have been incurred by the supplier in the taxable value. (AI Summary)
Canteen and transport provided under a manpower supply agreement form part of the manpower supply service and are not separate taxable supplies; the manpower supply attracts GST. If the supplier is registered, GST is charged on invoice; if unregistered, the recipient may be liable under the reverse charge mechanism. Valuation principles require inclusion of expenses borne by the recipient that should have been incurred by the supplier in the taxable value. (AI Summary)