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Accounting entry made for the purpose of Indian accounting requirements in the books of accounts of Project Office for salary cost of Expat employees will not be considered as a supply and therefore will not attract GST.

Applicability of GST the applicant, seeking an advance ruling in respect of the following question.

Whether the Goods and Services tax is applicable on the accounting entry made for the purpose of Indian accounting requirements in the books of accounts of Project Office for salary cost of Expat employees.

Held that— For GST to be applicable on the accounting entry made for the purpose of Indian accounting requirements in the books of accounts of Project Office for salary cost of Expat employees paid by the Head Office, such accounting entry should be seen as a supply of goods, services or both. Since we find that there is a relation of employer and employee between the Project Office and the expat employees, the provisions of Schedule-III of the CGST Act comes into play in this case as per which services by an employee to the employer in the course of or in relation to his employment will not be considered as a supply and therefore will not attract GST.—Hitachi Power Europe Gmbh, In Re… [2020] 22 TAXLOK.COM 129 (AAR-Maharashtra)