TaxTMI 
TaxTMI 
XYZ Pvt. Ltd. is owning motor cars and the same are used by the employees for their personal as well as for official use. Is XYZ required to pay GST on it towards service provided to employees?
Services supplied to employees
24 May 2023 
3 Replies 
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Perquisite treatment of employer provided vehicles is not a taxable supply, subject to employment contract and schedule exclusion.
Characterisation of employer provided cars as perquisites forming part of contractual remuneration determines GST incidence: if furnished as part of employment terms and covered by Schedule III exclusion, such provision is not a taxable supply, a position supported by administrative circulars and advance ruling precedents; attention must be paid to company policy, contractual terms and input tax credit treatment on acquisition. (AI Summary)
Characterisation of employer provided cars as perquisites forming part of contractual remuneration determines GST incidence: if furnished as part of employment terms and covered by Schedule III exclusion, such provision is not a taxable supply, a position supported by administrative circulars and advance ruling precedents; attention must be paid to company policy, contractual terms and input tax credit treatment on acquisition. (AI Summary)