Home Forum Goods and Services Tax - GST Month 11 2020 2020 (11) This
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Partial recovery of Mobile phone from employee-GST Input - Goods and Services Tax - GSTExtract Dear sirs, As per policy of one of our clients, they provide mobile phone to employees as per their pay scale. For example, Scale A employees are allowed phones upto ₹ 10,000/-. If employee intends to purchase more expensive mobile, say for ₹ 15000, then balance of 5,000/- is recovered from him. Now in effect, mobile is capitalised by 10,000/- in books but GST ITC is taken on entire invoice value of 15000. Whether this is correct or instead recovery of 5000/- should be treated as sale and corresponding ITC reversed?
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