After the passing of historic GST legislation, the eyes are all set on its implementation and its trickling impact on all sectors. For corporates, here is the news — GST will be applicable on all amenities outside CTC (cost to company).
As per the new GST bill, GST would be applied if an employee receives free goods and services beyond its stipulated sum. GST would be mounted if any employee uses company’s asset for personal use.
As CTC structures differs in companies, broadly all free luncheons, scholarships to employees’ children, car drops other such services will fall under this purview.
In addition, input tax credit will not be available on supply of several facilities including life and health insurance to employees. There is negation of input tax credit on free and subsidized food and beverages on at workplace, cab facilities, club and fitness memberships etc. Only those services which an employer is mandated to provide under law to employee...
This is a premium content.
Get unlimited access to People Matters and Mobile App!