TaxTMI 
TaxTMI 
XYZ Ltd. is taking car on lease and giving to employee for his use, supplying food to employees. All this is part of the employment terms as perquisites therefore no consideration is received from the employees. Is XYZ liable to pay GST on it since employer and employee are treated as related persons?
Services provided to employees
17 May 2019 
4 Replies 
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Employer-provided perquisites: usually outside GST if treated as salary, though characterization may raise GST questions.
Perquisites provided by an employer to an employee as part of salary-such as a leased car or food-are generally not subject to GST because Schedule III excludes services by an employee to the employer from being treated as a supply; however, interpretive uncertainty in Schedule III leaves a theoretical possibility of GST liability depending on factual characterisation of the provision as a separate taxable supply. (AI Summary)
Perquisites provided by an employer to an employee as part of salary-such as a leased car or food-are generally not subject to GST because Schedule III excludes services by an employee to the employer from being treated as a supply; however, interpretive uncertainty in Schedule III leaves a theoretical possibility of GST liability depending on factual characterisation of the provision as a separate taxable supply. (AI Summary)