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

Deemed supply between employer and employee can attract GST unless employer provided services are treated as perquisites included in salary.
If no amount is recovered, employer expenditure is generally not a supply, but Schedule I treats supplies between related persons without consideration as a deemed supply; employer provided bus and canteen services may therefore attract GST unless they are classified as employment perquisites and their value is included in salary, in which case Schedule III excludes them from supply. Contractor threshold exemption affects the contractor's liability but not the deemed supply analysis for the employer.