BENGALURU : Perquisites supplied by an employer to an staff underneath the contractual settlement would not be subjected to items and services tax (GST), the central board of indirect taxes and customs has clarified, which would put an close to ongoing litigations on the challenge. This will be applicable from July 2017. This is part of the slew of clarifications that the Board has issued regarding selections by the GST Council taken all through the two-day meeting in Chandigarh very last week.
The Board has also clarified that GST payable as a result of departmental audits and assessments can be made employing GST credits, rather of generating dollars payments, a transfer that will enable many organizations getting amassed tax credits.
There are a slew of litigations encompassing GST applicability in excess of perquisites available to staff and the divergent advance rulings on the subject led to confusion. A perquisite is a non-cash reward granted by an employer to the staff this sort of as transportation, canteen, health care, insurance policies, for their employees.