Employee Service Recoveries Taxable Under GST: Canteen and Transport Charges Subject to Specific Rate Structures

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The AAR ruled that recoveries from employees for canteen and transportation services are taxable under GST laws. Transportation services fall under SAC 9964, taxable at 5% without ITC or 12% with ITC. The taxable value is limited to the actual amount recovered from employees, with the perquisite portion considered non-taxable. Notice pay recoveries for premature employment termination are not considered taxable, as they are penalties designed to discourage non-serious employment candidates. The ruling clarifies the tax treatment of various employee-related recoveries, emphasizing the distinction between recoveries, perquisites, and penalty payments.....