GST on rent of employee paid by employer, Goods and Services Tax - GST

[Kaustubh Karandikar]

1) Employees of XYZ Ltd. are staying in a rented flat and rent for the same is paid by XYZ.

2) Employees is paying house rent and recovering from XYZ. Under both these situations, since employee is treated as related persons as per GST provisions, it will be treated as service provided to employees and therefore XYZ will be liable to pay GST on it under forward charge even if there is no consideration received by XYZ? Views of the experts please.

Posts / Replies

[hitesh mundra]

In Case of Employee & Employer Relationship If Employer Recover Rent amount from employee is covered under sch-III it is neither supply of Goods nor supply of service it can be treated as exempt supply under section 2(47) exempt supply inter-alia included non taxable supply, Is ITC need to be reversed if Is ITC needs to reversed under rule 42/43 of CGST rule?