in chapter supply under GST say that ,
(C) If services such as membership of a club, health and fitness centre etc. are provided free of charge to all the employees by the employer, the same will not be subjected to GST but same is said under ITC chapter so that activity which is not subject to GST how claim ITC in that activity ?
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supply under GST & ITC
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Quick Summary
Dear Bhagav.
Under Chapter III ,Sub Section (1)(c) of Section 7 of CGST Act , the Activities pspecified in Schedule I , made with or without consideration is supply.
Now if we read schedule I .
1. Permanent Trf. or disposal of business Asset . Means if Asset is disposed off without consideration is levy of GST (Taxable value to be computed as per valuation rule)
2. Supply of Goods or Services between Related or distinct person.
Means supply between two branches is taxable even without consideration.
Provided : Gifts not exceeding 50K in Fy from employer to Employee shall not be treated as supply.
Now after reading above , supply can be with or without consideration..... Except activities provided in schedule III which are not cover under defination of Supply.
Yes membership of Club, Health & Fitness centre is Supply in GST , but ITC available or Block is depend upon the Supplier & Recepeint.
Now if supplier of such services will definitely charge GST on bill and If any company is Recepeint whose employees are availing such services , the company cannot avail ITC on same as it's block u/s 17(5) of CGST Act .
Under Chapter III ,Sub Section (1)(c) of Section 7 of CGST Act , the Activities pspecified in Schedule I , made with or without consideration is supply.
Now if we read schedule I .
1. Permanent Trf. or disposal of business Asset . Means if Asset is disposed off without consideration is levy of GST (Taxable value to be computed as per valuation rule)
2. Supply of Goods or Services between Related or distinct person.
Means supply between two branches is taxable even without consideration.
Provided : Gifts not exceeding 50K in Fy from employer to Employee shall not be treated as supply.
Now after reading above , supply can be with or without consideration..... Except activities provided in schedule III which are not cover under defination of Supply.
Yes membership of Club, Health & Fitness centre is Supply in GST , but ITC available or Block is depend upon the Supplier & Recepeint.
Now if supplier of such services will definitely charge GST on bill and If any company is Recepeint whose employees are availing such services , the company cannot avail ITC on same as it's block u/s 17(5) of CGST Act .
So what is meaning of thisi (f services such as membership of a club, health and fitness centre etc. are provided free of charge to all the employees by the employer, the same will not be subjected to GST) because it is also give in inter module page 2.28 ?
Yes if Employer do charge from Employee will not cover under supply hence not subject to GST.
Since It's provided free by Employer , can't be treated as outward supply (Refer 2(83)) & not even treated as Business (refer Business defination) & Moreover it is provided in relation to employment Hence can be cover Under Schedule III
Since It's provided free by Employer , can't be treated as outward supply (Refer 2(83)) & not even treated as Business (refer Business defination) & Moreover it is provided in relation to employment Hence can be cover Under Schedule III
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