Salaried Class You May Be In For Restructuring Of Your Monthly Credits

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    Why the above said shall come in for employees? This shall be in the wake of GST aftermath and the new ruling by Authority of Advanced Ruling which says that when the employer is providing you meal coupons and other reimbursements and deducting the same from your salary, then the given grant shall qualify as an outward supply and will attract GST.

    Salaried Class You May Be In For Restructuring Of Your Monthly Credits

    As per the Factories Act, a company maintaining employee strength of over 250 is compulsorily required to provide canteen services. Though in the pre-GST era it was more or less a supporting activity but in accordance with the GST rules, providing such services comes within the ambit of the main business of the company or employer.

    The service of food coupons or canteen etc which is then provided by or recovered from your monthly compensation amounts to a supply. So, as per the GST act, when the employer provides such services it is extending the same as a supplier and on it GST can be charged.

    The GST rates are however yet to be decided. Not just this be prepared to get the GST amount deducted from your monthly income for such services plus other reimbursements such as hiuse rentals, uniform, medical expenses etc.

    If the GST Council agrees to expand the ambit of the GST to bring reimbursements or indirect earnings under the indirect tax net, it is certainly going to burn bigger holes in the pockets of employees working in private sectors.

    Goodreturns.in

    Story first published: Friday, April 20, 2018, 12:13 [IST]
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