Benefit of employee
This query is : Resolved
05 February 2025
Interest free loan given by employer to employee
For his personal consumption.
Is gst applicable to employer
For his personal consumption.
Is gst applicable to employer
05 February 2025
No.
06 February 2025
But sir employee is related person. In this case even though without consideration treated as supply.
What is your opinion
What is your opinion
06 February 2025
GST is applicable only if there is a supply of goods or services as defined under Section 7 of the CGST Act, 2017.
A loan, by itself, is not considered a supply of goods or services because it involves the lending of money, which is considered an actionable claim and is explicitly excluded from the scope of GST (as per Schedule III of the CGST Act).
Secondly, GST is levied on the supply of goods or services for consideration, an interest-free loan does not attract GST because there is no taxable supply.
Under GST, services provided by an employer to an employee in the course of or in relation to employment are treated as neither a supply of goods nor a supply of services (as per Schedule III of the CGST Act).
Therefore, any benefit (including an interest-free loan) provided by an employer to an employee in the context of employment is outside the scope of GST.
A loan, by itself, is not considered a supply of goods or services because it involves the lending of money, which is considered an actionable claim and is explicitly excluded from the scope of GST (as per Schedule III of the CGST Act).
Secondly, GST is levied on the supply of goods or services for consideration, an interest-free loan does not attract GST because there is no taxable supply.
Under GST, services provided by an employer to an employee in the course of or in relation to employment are treated as neither a supply of goods nor a supply of services (as per Schedule III of the CGST Act).
Therefore, any benefit (including an interest-free loan) provided by an employer to an employee in the context of employment is outside the scope of GST.
06 February 2025
Ok, धन्यवाद सर, Thanks sir
06 February 2025
You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- ITR validation error - Balance sheet is not filled
- ITR returnFY25-26
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
