Services supplied to employees

[Kaustubh Karandikar]

House Rent and Tea and food expenses of the employees are paid by the company. There is no mention in the employment contract regarding such facilities. Will it amount to employer supplying service to employee and chargeable to GST? In my view yes.

AI Summary

Debate on GST Applicability for Employee Benefits Not in Contracts: Are House Rent and Food Expenses Taxable? A query was raised about whether a company's payment of house rent and food expenses for employees, not mentioned in employment contracts, constitutes a service subject to GST. One participant argued that such benefits might fall under Schedule III and not be taxable, as they relate to employment beyond written contracts. Others concurred, referencing an Authority for Advance Ruling decision supporting this view. However, one participant believed the company should pay GST on these expenses. The discussion reflects differing interpretations of GST applicability on employee benefits not explicitly stated in contracts.