Subsidized shared transport facility provided to employees in terms of employment contract is not chargeable to GST

Last updated: 22 May 2021

Court :
AAR Uttar Pradesh

Brief :
The AAR Uttar Pradesh, in the matter of North Shore Technologies (P.) Ltd. [Order No. 59 of 2020 June 29, 2020] has held that, arranging the transport facility for the employees by the company engaged in business of software development is not an activity which is incidental or ancillary to the activity of software development, nor can it be called an activity done in the course or furtherance of development of software as it is not integrally connected to the business in such a way that without this, the business will not function. Therefore, subsidized shared transport facility provided to employees in terms of employment contract through third party vendors, would not be construed as 'supply of service'.

Citation :
Order No. 59 of 2020 June 29, 2020