Perquisites by employer to employees – on contractual agreement
Perquisites by employer to employees – on contractual agreement CGST Circular No. 172/04/2022-GST on 6th July 2022 One of the critical matters was the taxation of perquisites that an employer gives to its employees as per a contractual agreement. · No GST applies on such perks where there is a contract in place for employment, and such perquisites are mentioned. · The Circular explains that this is also in line with the Schedule III of the CGST Act. · It says that any services by an employee to the employer during employment are out of the scope of GST. The same Circular further clarifies the interpretation of certain items under Section 17(5) of the CGST Act. First of all, the proviso given under clause (b) of Section 17(5) keeping obligatory supplies by the employer to employees eligible for input tax credit claims applies to the entire clause (b). ( Foods & beverages, outdoor catering, beauty treatment, health insurance, cosmetic & plastic surgery.) In