Reverse Charge on Employee Reimbursement

In my view, conveyance should be covered under GST.

Otherwise, this can be used for evasion of GST.

e.g. if an employee hires a taxi (unregistered dealer) and incurs  Rs. 1000 on the same. Since, it is a business expense GST must be paid on reverse charge basis.

If I ask my employee, not to attach the bill of taxi with his reimbursement claim, and instead charge it as if he used his own vehicle and reimurse him on the basis of say, 100 Kms @ 10 per km, such reimbursement should also attract GST on reverse charge basis, otherwise we can easily evade GST.

Readers views are solicited...

Pankaj 

Sir, My opinion is, even if an employee (e.g. Business development team or an operations manager) consumes food or beverages from an Unregistered Supplier in the market e.g. he buys a cold drink and gets it reimbursed from the Company, the expense is not staff welfare, strictly speaking. Its a business development/ operating expense

The reverse charge would be applicable on the same.

Even if I consider it as staff welfare, is there any relaxation/exemption for staff welfare. I think NO.

Any other views please...

rgds

Pankaj A

Dear Pankaj Arya.,

Staff directly consumed items are not under GST. If they are giving to his customers then its consider as Business dealing.

Food, Tea coffee and snacks also feed a person with or without company's support. So, Company ll be given for employees satisfied for full bledging of his service...