gst rate for employee recovery

[Madhavan iyengar]

A Company recovers from its employees ₹ 500 per month per employee towards bus transportation

Query: What is the GST rate to be applied on the bus amount recovery is the rate of tax to be applied on basis of bill received from bus contractor @12% or we need to charge GST@18% being general service rate

AI Summary

Company Debates Correct GST Rate for Employee Bus Transport: 5%, 12%, or 18%? HSN 9964 Discussed A company inquired about the appropriate GST rate for recovering bus transportation costs from employees, questioning whether to apply the 12% rate used by their bus contractor or the general service rate of 18%. Ganeshan Kalyani suggested an 18% rate, considering it a support service. Kasturi Sethi argued it falls under HSN 9964, which attracts 5% or 12% GST, and advised seeking an Advance Ruling if uncertain. The discussion also touched on GST implications if the service was free, concluding that typically, such benefits are part of salary and not subject to GST.