Employee Facility Recoveries Taxable Under GST as Qualifies as Supply of Services

In re Sigma Electric Manufacturing Corporation Pvt Ltd. (GST AAR Maharashtra) The Authority for Advance Ruling, Maharashtra, examined whether deductions made by an employer from employees’ salaries towards canteen and transportation facilities, and notice pay recovery, attract GST. The applicant, a manufacturing company, provided canteen and transport services to employees through third-party vendors and recovered a nominal portion of the cost from employees, while bearing the balance. The canteen facility was provided pursuant to statutory obligations under the Factories Act, and transport ...