Out of ctc incentive or ex-ratia paid to employee is it serv
This query is : Resolved
RUSHI GSTM
(Querist)
04 May 2017
As per GST Provision Gifts to Employee up to 50.000/- is Exempted.
But Instead of Gifts is Company pay Incentive on increase of Sale and amount paid as a incentive is it treated as service from Employee to Employer or vise versa. and GST is applicable as a Service to Employer from Employee?
Our Last Year Sale Target of 200 Crore and We have made sale of 215 Crore for Financial Year 2016-17 and Incentive will be paid in September-2017 is GST applicable on incentive paid on rise of sale of 15 Crore amount i.e.50,000/- per employee.so total amount comes around 25 Laks. It gst is applicable in the month of September-2017 if GST w.e.f. July-17. Please explain in details provisions
But Instead of Gifts is Company pay Incentive on increase of Sale and amount paid as a incentive is it treated as service from Employee to Employer or vise versa. and GST is applicable as a Service to Employer from Employee?
Our Last Year Sale Target of 200 Crore and We have made sale of 215 Crore for Financial Year 2016-17 and Incentive will be paid in September-2017 is GST applicable on incentive paid on rise of sale of 15 Crore amount i.e.50,000/- per employee.so total amount comes around 25 Laks. It gst is applicable in the month of September-2017 if GST w.e.f. July-17. Please explain in details provisions
Rajesh Kumar
(Expert)
09 May 2017
No, GST shall not be applicable on incentive paid to the employee.
RUSHI GSTM
(Querist)
09 May 2017
Rajesh Sir Please explain
Rajesh Kumar
(Expert)
09 May 2017
GST is on supply of goods or services. Schedule III defines activities which shall not be treated as supply. Employer-employee relationship in course of employment shall not treated as supply. Incentive is paid to employee in course of employment, as per employment contract (oral or written). Hence GST is not applicable.
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