Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 114956
- 0 -

GST on staff welfare

Date 11 May 2019
Replies4 Answers
Views 5013 Views

YZ (Proprietary Concern) supplying food to their employees as well as providing accommodation to them for stay, rent of which is paid by XYZ. No amount is recovered by XYZ from the employees for this facility. Is XYZ liable to pay GST on it? If yes, how to arrive at the value for paying GST?

4 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on May 12, 2019
2.

In my view, no company would provide food and accommodation free of cost to their employees whatever may be the background.The Company may charge in some guise. The department has eagle, eye. The department knows very well how to unearth hidden facts.This activity is covered under Schedule-II Serial No.1 & 2 and both activities are taxable For valuation purpose resort to Rule 28 (a) of CGST Rule, 2017. Advise your client to leave this idea of "Free Lunch". It is not free at all. Nothing is free.

- 0
Replied on May 12, 2019
3.

If no recovery is made from the employee then no GST is applicable. However, the department may raise a question on this part.

- 0
Replied on May 13, 2019
4.

Dear Sir,

While providing such amenities to employees without any recovery, it would be diligent to include such clauses in the terms of employment contract providing all the amenities would be provided to employee in the course of his employment. This stand would effect your TDS deduction towards salary of employees by treating the amenities as Perquisites which you need to take care.

Once these amenities are provided by employer to employee for the employment services provided by employee to employer then the same would get it covered under Schedule III of CGST which would be "neither supply of goods nor supply of services".

However, in relationt to eligibility of ITC on such expenses you need to follow the conditions and restructions provided u/s 16 & 17 of CGST Act.

Old Query - New Comments are closed.

Hide
Recent Issues