ISSUE:
Whether the GST would be payable on recoveries made from employees for providing canteen facility at subsidized rates in the factory and office?
Whether the GST would be payable on recoveries from employees for providing bus transportation facility? If yes, whether the applicant is exempted under notification no. 12/2017 Central Tax (Rates)?
Whether the GST would be payable on the notice pay recoveries from employees, who do not serve the full notice period?
RULE:
When an employer provides services to employees through third-party vendors, the employer is considered the recipient of the services. Such services are not in the course or for furtherance of business and, therefore, do not constitute a “supply” under GST. As a result, recoveries made from employees for these services do not attract GST.