GST ON CONCESSIONAL FOOD TO EMPLOYEES

[CABIJENDERKUMAR BANSAL]

Dear All,

I have a query regarding GST treatment on Concessional Food to employees.

For example:- company is getting Tiffin from outside @40 Rs. and charging to employees and contractor workers @15 rs. balance 25 rs. is contributed by company.

Our query is, on which amount we should charge GST ? Whether on 15rs. or 40 rs. or (40+10%= 44) and take credit of GST on purchase of 40 rs./-

Thanks,

Gorav Goyal

8447589778

AI Summary

Company Seeks GST Guidance on Subsidized Employee Meals; Experts Suggest Charging GST on Employee Contribution A company is seeking advice on the appropriate Goods and Services Tax (GST) treatment for providing concessional food to employees. The company buys meals for 40 INR each and charges employees 15 INR, subsidizing the remaining 25 INR. Experts in the forum generally agree that GST should be charged on the 15 INR paid by employees. However, one participant notes that if the employee-employer relationship is considered a related party under GST law, the valuation might require adding 10% to the cost, resulting in a GST charge on 44 INR, with credit taken on the 40 INR purchase.