No GST is payable on recovery made from the employees towards Canteen facility & transportation facility provided by the Employer and on Notice Pay Recovery

The Ld. Authority for Advance ruling Maharashtra vide its Order dated 04.01.2022 in the matter of M/s Emcure Pharamaceuticals Limited in the Advance Ruling Application No. 119 dated 28.02.2020 held that the recovery made from the employees towards canteen facility, transportation facility provided by the employer and notice pay recovery are not subject to GST.

Questions seeking Advance Ruling – The application was filed by the Applicant seeking advance ruling that whether GST would be payable on (a) Recoveries at subsidized rate from its employees for the canteen facility provided by third party vendor, (b) Recovery at subsidized rates from employees for transportation facility also provided by third party vendor; and, (c) Notice Pay recovery, i.e. compensation collected from the employee for not serving the stipulated notice period.

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