introduced from July 1 +MUMBAI: An employer-employee relationship is something which is no longer the sole purview of the HR department. Under GST, which is set to be, the taxman could also be probing into various facets of it. Supply of goods or services to a related party (a term that includes employees) without consideration, when made in the course of furtherance of business, is taxable under GST.An exception has been carved out in the GST Bill. "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," says Sachin Menon, indirect tax leader at KPMG India. While cost to company structures differ, typically, free lunch , car drops, scholarship to employee's children are not part of the CTC package, which leaves India Inc to grapple with GST complexities.

Source: Times of India March 28, 2017 23:29 UTC