The Hon’ble AAR, Maharashtra in ] held that w.e.f. February 1, 2019 input tax credit () shall be available to employer (Tata Motors) on GST charged by service provider on hiring of bus/motor vehicle having seating capacity of more than 13 persons for transportation of employees to and from workplace.
Whereas Hon’ble AAR, Kerala in Re: Caltech Polymers Pvt. Ltd. [2018 (12) G. S. T. L. 350 (A. A. R. - GST] held that reimbursement of food expenses by employer from the employee is chargeable to GST as it is a deemed supply, it has been considered as incidental and ancillary to the business. Relevant extract:
The Caltech case (supra) has been upheld by Hon’ble AAAR, Kerala [Case No. CT/7726/2018-C3 dated September 25, 2018].
To know divergent perspective discussed at length, kindly watch the video “Whether Recovery of Expenses by Employers chargeable to GST - Divergent AAR || CA Bimal Jain”-