Business

Employees Using Company Assets That Exceed Their Stipulated Sum May Trigger GST

| 0
74
| March 29 , 2017 , 09:37 IST
[caption id="attachment_220680" align="aligncenter" width="700"]The Rajasthan Assembly on Friday unanimously ratified the Goods and Services Tax (GST) Constitution (122nd) Amendment Bill 2016. Representational Image[/caption] Goods and Services Tax (GST) will be put into action from July 1. Under this any employee that uses any company asset for personal use (that exceeds his/her CTC) will trigger GST liability! According to a TOI report: An exception has been made in the GST Bill. As per Schedule 1 - `Gifts' not exceeding Rs 50,000 in value in a financial year by an employer to an employee shall not be treated as supply of goods and services. ALSO READ: Finance Minister Arun Jaitley Introduces Four GST Bills In Lok Sabha Indirect Tax Leader at KPMG India, Sachin Menon, Told TOI, "Amenities provided to an employee, which is not part of his or her cost to company (CTC) package, could now possibly attract a GST levy." ALSO READ: Cabinet Clears 4 GST Supplementary Legislations For Introduction To Parliament The final bill also includes a list of services for which input tax credit will not be available. Some of these are facilities extended to employees such as free or subsidised food and beverages at the workplace, sponsorship of club or fitness centres membership, cab facilities, group life and health insurance, The report further adds. So if the company issues its assets to an employee for his personal or official use- it will be considered as a service that was provided to the worker and that is payable as per the GST!