GST applicability on subsidized Food and pick up & drop off transport facility to employees

[RS SIMHA]

Can experts in the forum comment on applicability of GST on the subsidized food and pick up and drop off transport facility provided by employer to employee.

[KASTURI SETHI]

Both activities are taxable under GST.

[Nash Industries I Pvt Ltd]

Reference to the Advance Ruling of Kerala

Sub:- GST Act, 2017 - Advance Ruling U/s 98 - whether recovery of food .~ expenses from employees for the canteen provided by company comes under the definition of outward supplies are taxable under GST Act - Orders issued. Read:-Application dated 30.12.2017 from M/s. Caltech Polymers Pvt. Ltd. ORDER No.CT/531118-C3 DATED 26/03/2018 1. M/s. Caltech Polymers Pvt. Ltd., Malappuram = 2018 (4) TMI 582 - AUTHORITY FOR ADVANCE RULING - KERALA

RULING It is hereby clarified that recovery of food expenses from the employees for the .canteen services provided by company would come under the definition of 'outward supply' as defined in Section 2(83) of the Act, 2017, and therefore, taxable as a supply

Regards

S.Ramaswamy

[DR.MARIAPPAN GOVINDARAJAN]

The GST is applicable on the subsidized food nd pick up and drop off transport facility provided by employer to employee.

[Ganeshan Kalyani]

If the expense forms part of salary then GST is not applicable.

AI Summary

GST applicability on employee benefits: subsidized food and transport can attract GST unless treated as salary. GST applies to subsidized food and employee pick up/drop off transport when recoveries from employees for such services constitute an outward supply and are taxable; if the expense is instead treated as a component of salary, GST will not apply.