Employee Dormitory Accommodation Not Supply, ITC Allowed

Suzuki Motor Gujarat Pvt Ltd (GST AAR Gujarat) Gujarat AAR clarified that nominal amounts recovered from permanent employees for dormitory accommodation are not treated as ‘supply’ under GST, while charges recovered from student trainees are taxable. ITC is allowed for both categories, subject to cost borne. The AAR ruled that employee recoveries are exempt from GST, student trainees’ recoveries are taxable, and ITC can be claimed on GST paid to the accommodation service provider. GST ruling confirms that dormitory accommodations provided to permanent employees are considered per...