GST would not be applicable on part recovery transaction between applicant and its employee.
Levy of GST— In the instant case, the applicant is located in Maharashtra and primarily engaged in providing software development and support services to its holding company located outside India, provides transportation facility to its employees.
the applicant, seeking an advance ruling in respect of the following questions.
1. Whether part recovery of 'renting of motor vehicles services'/'cab services' from employees in respect of the transport facility provided to them would be treated as 'supply' as per provision of GST and whether GST is leviable on the same?
2. If answer to question no. 1 is yes, then how the value of said supply will be determined keeping in mind that employee and the applicant are related party as per provisions of GST law?
3. Further also if the answer to question no 1 is yes, then whether Input Tax Credit is admissible in respect of GST paid on inward supply of 'renting of motor vehicles service' which are used for the employee?
The applicant is arranging the transport facility for their employees is definitely 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.
Arranging transport facility to its employee is not a supply of service, accordingly the remaining questions become redundant and merit no discussion.
Held that— part recovery of 'renting of motor vehicles services' / 'cab services' from employees in respect of the transport facility provided to them would not be treated as 'supply' as per provision of GST and accordingly GST will not applicable.
GST would not be applicable on part recovery transaction between applicant and its employee.
Levy of GST— In the instant case, the applicant is located in Maharashtra and primarily engaged in providing software development and support services to its holding company located outside India, provides transportation facility to its employees.
the applicant, seeking an advance ruling in respect of the following questions.
1. Whether part recovery of 'renting of motor vehicles services'/'cab services' from employees in respect of the transport facility provided to them would be treated as 'supply' as per provision of GST and whether GST is leviable on the same?
2. If answer to question no. 1 is yes, then how the value of said supply will be determined keeping in mind that employee and the applicant are related party as per provisions of GST law?
3. Further also if the answer to question no 1 is yes, then whether Input Tax Credit is admissible in respect of GST paid on inward supply of 'renting of motor vehicles service' which are used for the employee?
The applicant is arranging the transport facility for their employees is definitely 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.
Arranging transport facility to its employee is not a supply of service, accordingly the remaining questions become redundant and merit no discussion.
Held that— part recovery of 'renting of motor vehicles services' / 'cab services' from employees in respect of the transport facility provided to them would not be treated as 'supply' as per provision of GST and accordingly GST will not applicable.