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 7 GST 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 on employee recoveries: AARs are applicant specific, so canteen and transport recoveries may remain taxable.
GST on employee recoveries turns on whether recoveries constitute a supply of service. A Maharashtra AAR found health insurance premium recoveries from employees not to be supply for that applicant, but other rulings and the AAAR have treated canteen and transport recoveries as consideration subject to GST. Advance rulings bind only the applicant and the jurisdictional officer; relying on another taxpayer's AAR for similar activities risks adverse department action and litigation.