Levy of GST— The present appeal has been filed by the appellant against the Advance Ruling order.

Applicant is engaged in the business of manufacturing/trading of Intralogistics System. They have hired Motor Vehicles on contract basis from a Transport Agency. They are using said vehicles to provide transportation facility to employees in accordance with their human resource policy at either a nominal cost where the vehicles are air conditioned, or free of cost in other cases.

As per order of advance ruling authority the transportation facility provided by the Applicant to its employees for travel to office free of cost is taxable under the provision of the CGST Act. For valuation of such services the provisions under Section 15 of the CGST/ HGST Acts are applicable”.

The optional Transport Facility for employees with no equivalent provisioning for non-opting employees, is exclusive of the contractual obligation of the employer under the contract for employment. It’s been provided to suit his business requirements and is in furtherance to his business. The same would be taxable under relevant provisions of the CGST and HGST Acts.

Held that— In view of the above discussions and findings, we find that the transactions executed in the course of contractual obligation of an agreement of employment are beyond the scope of GST as clarified in the Press Release dated 10.07.2017, of CBIC.

We hold that provisioning of transport facility provided by the Appellant is exclusive of the contractual obligation of the employer in the course of employment. The same shall be liable to GST, on a value that exceeds the total gift value up to Rs.50000/- given by the Appellant to an employee availing this facility in a financial year.