Home Case Index All Cases GST GST + AAAR GST - 2020 (11) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 1055 - AAAR - GSTLevy of GST - transportation facility provided by the employer (Applicant) to its employees for travel between predefined location to its the office, free of cost - recovery of nominal amount on account of air conditioning facility for transportation facility provided by the employer (Applicant) to its employees for travel between predefined location - taxable value of the transaction - HELD THAT:- It is observed that the Press Release dated 10.07.2017 very lucidly clarifies that transactions in the course of contractual obligation between employer and the employee are beyond the scope of GST. The same is very well reliable where employer-employee relation is in place and any service by the employer needs to be examined for leviability under GST. The same aptly provides that since service by an employee to the employer is outside the purview of GST, it follows that so will be the supply by the employer to the employee made in terms of the contract of employment. Thus, the transportation facility is exclusive of the contractual obligation of the employer in the course of employment - Also, the circular mentioning that services of providing membership of a 'club1 or of a 'health or fitness centre' to employees is not subject to GST when provided free of charge to 'all' the employees, indicates that provisioning has to be under contractual agreement of employment. The provisioning of transport facility provided by the Appellant is exclusive of the contractual obligation of the employer in the course of employment. The same shall be liable to GST, on a value that exceeds the total gift value up to ₹ 50000/- given by the Appellant to an employee availing this facility in a financial year.
|