In re Integrated Decisions And Systems India Pvt Ltd (GST AAR Maharashtra)
Employer arranging transportation facility for their employees does not fall under the definition of business
The AAR, Maharashtra in the matter of M/S. Integrated Decisions and Systems (India) Pvt. Ltd. [Advance Ruling No. GST-ARA-116/2019-20/B-113 dated December 16, 2021] held that, arranging the transport facility for the employees is not an activity which is incidental or ancillary to the activity of software development, nor can it be called an activity done in the course of or in furtherance of development of software as it is not integrally connected to the business in such a way that without this the business will not function.
Facts:
M/S. Integrated Decisions and Systems (India) Private Limited, (“the Applicant”), is engaged in providing software development and support services to its holding company located outside India. The Applicant provides transportation facility to its employees, for which the Applicant avails ‘renting of motor vehicles service’, ‘cab services’ through third party. The Applicant initially pays the entire amount to the third party and subsequently recovers the partial amount from the respective employees availing such facility.
Issue:
Whether the partial amount recovered from the employees for facilitating transport would be construed as supply of service by the Applicant?
Held:
The AAR, Maharashtra in Advance Ruling No. GST-ARA-116/2019-20/B-113 dated December 16, 2021 held as under:
