GST to corporate for meal cards

[Guest]

Hi everyone. I have query specific to meal cards. Is the benefit which is given to the employees in the form meal cards attracts GST to the employer and also the employee in any way.

there is lot of confusion in this regards and appreciate if you could help here

Regards

Manish

regards

Manish

[Rajagopalan Ranganathan]

Sir,

As per Section 17 (5) (b) (i) of CGST Act, 2017, " food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply.

 

[Rajagopalan Ranganathan]

Sir,

In continuation fo my reply dated 8.6.2017 I wish to state that of the supply of meal cards to your employees will result as input service in furtherance of your business then ITC is available, that is, provision of meal card is must as per any statute then you can av avail the ITC. Otherwise you aree not eligible to avail ITC.

[YAGAY andSUN]

If it is FOC then no GST but if you are recovering any money then on that recovered amount you would have to pay the GST. It has been clarified by the Department in an Advance Ruling.

AI Summary

GST on Meal Cards: ITC Available Under Section 17(5)(b)(i) if Essential for Business; Tax on Recovered Amounts Applies A query was raised about the applicability of Goods and Services Tax (GST) on meal cards provided to employees. One response cited Section 17(5)(b)(i) of the CGST Act, 2017, explaining that input tax credit (ITC) is available if meal cards are necessary for business operations. Another response clarified that if meal cards are provided free of charge (FOC), no GST is applicable, but GST must be paid on any recovered amount from employees, as clarified by an Advance Ruling.