Whether the nominal amount recovered from the employees towards the transportation service is taxable under GST?
This is a question on which the employers are scratching their heads since the inception of GST.
The moot questions are:-
Whether it is not a supply under Schedule III; or
Is it covered under Schedule I being supplied without consideration?
The answer lies in the Policy framed by the employers for recovery of such amount. Few things which are to be taken care
1 Is it a mere deterrent so that the employee takes it seriously
2 Is the employer actually in the business of such supply
Taking care of these one can say that GST is not leviable on these.
A recent Advance ruling issued in the matter of Tata Motors Ltd also ruled in favor of the assessee that such nominal charges are covered under Schedule III, hence not taxable
However, I do not subscribe to this view completely. I have a view that this does not even cover into Business.
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