Supply or not?

1) If such accomodation facilities are provided to employee/staff pursuant to contract of employment -> not a supply at all, refer schedule III , entry 1

2) If such accomodation facilities are provided to employee/staff not pursuant to contract of employment & value of service exceeds 50,000- it will be supply under schedule 1(b).

Note -> Schedule II should not be used for deciding whether given transaction is a supply

It should be used ONLY for classification of a transaction which already constitutes supply as per 7(1) 

Refer - Section 7(1A)