GST applicability on recoveries from employees.

[suresh sathyamurthy]

Dear Sir

This is with regard to applicability of GST on recovery from employees towards food and transportation (pickup & drop).

As per the recent advanced ruling of Maharashtra dated 4.10.2019, (AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE: M/S. JOTUN INDIA PVT. LTD. GST-ARA-19/2019-20/B-108 Dated: - 04 October 2019) = 2019 (10) TMI 482 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA were it is given ruling that applicant is not in the business of providing insurance coverage i.e recovery of health insurance premium from employees is not amounts to supply of service under section 7GST Act 2017.

As per above advance ruling, recovery from employee is constitute supply or not???

Can we apply same logic even for recovery from employee towards transportation and not remit GST

Can we apply same logic even for recovery from employee towards canteen expenses and not remit GST

AI Summary

GST Ruling: Health Insurance Premiums Not Taxable, But Food and Transport Recoveries May Be. The discussion centers on the applicability of GST on recoveries from employees for expenses like food and transportation. A recent ruling by the Maharashtra Authority for Advance Ruling (AAR) stated that recovery of health insurance premiums from employees is not considered a supply of service under the GST Act. However, experts in the forum argue that this ruling cannot be universally applied to other recoveries, such as food and transportation, as different rulings, like those from Kerala's AAAR, have determined these are taxable. It is emphasized that advance rulings are specific to applicants and not broadly applicable, suggesting that relying on such rulings without individual applications may lead to litigation.