Benefit of employee
This query is : Resolved
Quick Summary
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.
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