GST on Canteen Service and Bus Service - Company to Employees

[kiran kumar]

Dear Sir,

1. Our company situated nearly 30 km from city and for the same our Company own bus will run three shift to pick up and drop of employees. For this Bus service nearly company spent 2,00,000 per month (Contract Bus Driver, Cleaner, Diesel and Repair charges will be born by Company)

2. Our company provide utilities and Room in factory for Canteen contract for food preparation. Contractor will submit the monthly bill to company nearly 1.4 lacks without GST. Since his turnover not crossed 20 lacks.

My auditor asking our company need to pay the GST on above two Service (Bus Service 2 lacks and Canteen 1.4 lacks - Company provided service to Employees) - Requesting you to advise on this Issue.

Thanks & Regards,

Kiran Kumar

AI Summary

GST Applicability on Employee Bus and Canteen Services: Key Insights from Schedule I of CGST Act A company located 30 km from the city provides bus and canteen services to its employees. The bus service costs the company 2,00,000 per month, while the canteen contractor charges 1.4 lakhs monthly, both without GST. The company's auditor questioned the GST applicability on these services. Forum responses indicate that GST is not applicable unless costs are recovered from employees, as these are not considered 'supply of service' under GST law. However, if these services are not treated as perquisites included in the employees' salaries, they may be deemed a supply under Schedule I of the CGST Act, making GST applicable.