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GST Helpdesk: An expert answers your questions pertaining to the new tax and its impact
Employee benefits such as food coupons, telephone at residence, conveyance etc - how will these be treated under the GST? What about festival allowances and bonuses? What are the slabs as per the new tax regime? Srimathy D, Guindy
By
migrator
migrator
Chennai
As long as the employee benefits are part of the CTC agreed upon by employer within the contract for employment, the workers will not be taxed. If the benefits are not part of CTC, it will be deemed as gifts. Gifts in kind or in cash, exceeding Rs 50,000, would be taxed in GST. Â While it would depend upon what is given as free supply, by and large the GST slab would be 18 per cent.Â
Such gifts are deemed as taxable supply under the Act. However, if any allowances or bonus are given in money, then no tax is applicable, as supply of money is not supply of goods.Â
D Arvind, Managing Partner, D Arvind & Associates, LLP
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