https://www.taxtmi.com/highlights?id=87614 The AAR ruled that nominal deductions from employee salaries for canteen and transportation services constitute a "supply of service" under GST. The authority determined that the recovered amounts are taxable, while the employer's perquisite portion remains non-taxable. For canteen services, input tax credit (ITC) is not available, and GST applies to the employee-recovered amount. In the case of non-air-conditioned bus transportation, GST is applicable on the nominal deduction, and ITC can be claimed from the transport service provider. The decision hinges on distinguishing between employer-provided benefits and taxable service recoveries, ultimately establishing a nuanced approach to GST treatment of employee welfare services. en-us Mon, 21 Apr 2025 08:41:42 +0530 Mon, 21 Apr 2025 08:41:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=87614 The AAR ruled that nominal deductions from employee salaries for canteen and transportation services constitute a "supply of service" under GST. The authority determined that the recovered amounts are taxable, while the employer's perquisite portion remains non-taxable. For canteen services, input tax credit (ITC) is not available, and GST applies to the employee-recovered amount. In the case of non-air-conditioned bus transportation, GST is applicable on the nominal deduction, and ITC can be claimed from the transport service provider. The decision hinges on distinguishing between employer-provided benefits and taxable service recoveries, ultimately establishing a nuanced approach to GST treatment of employee welfare services. Highlights GST Mon, 21 Apr 2025 08:41:42 +0530 https://www.taxtmi.com/highlights?id=87614