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

GST on concessional employee food: taxability generally on amount recovered, subject to related party valuation adjustments.
GST on concessional employee food is generally charged on the amount recovered from employees, the employer's recovery constituting an outward supply. Some auditors rely on related party valuation principles to add a deemed margin to the supplier's invoice value to determine taxable value, while input tax credit is claimed on the supplier's actual invoice.