TaxTMI 
TaxTMI 
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?
GST on staff welfare
11 May 2019 
4 Replies 
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GST on employer-provided amenities may be taxable supply or non-supply perquisites, impacting valuation and ITC eligibility.
Employer provided food and accommodation given free to employees may be taxed as a supply under Schedule II with valuation under Rule 28(a); alternatively, absence of recovery may be argued to negate GST though subject to departmental scrutiny; documenting amenities as employment perquisites can place them under Schedule III as neither supply, but input tax credit on such expenses remains subject to sections 16 and 17 of the CGST Act. (AI Summary)
Employer provided food and accommodation given free to employees may be taxed as a supply under Schedule II with valuation under Rule 28(a); alternatively, absence of recovery may be argued to negate GST though subject to departmental scrutiny; documenting amenities as employment perquisites can place them under Schedule III as neither supply, but input tax credit on such expenses remains subject to sections 16 and 17 of the CGST Act. (AI Summary)