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GST – Tamil Nadu AAAR - Scope of Entry No.1 of Schedule III of the CGST Act, 2017 – Meaning of ‘perquisite’ - Applicability of GST on car facility extended to the employees by the employer in the course of employment – Appellant contention that the facility of car lease provided to the employees under the employment contract will qualify as a perquisite under the Income Tax Act, and accordingly would be exempt from payment of GST in view of Entry 1 of Schedule III of the CGST Act, 2017 – HELD – the appellant pays the lease premium directly to car leasing company, and the overall salary cost of the related employees will get reduced to the extent of cost incurred by company in relation car facility provided to the employees - in respect of the services relating to car lease provided by the applicant to its employees, the provisions of Entry 1 of Schedule III to the CGST Act applies only to the value of the actual benefit in monetary terms extended to the employees, and not on the value of car lease premium charged and recovered on actual terms from the employees - in the instant case, having paid the lease premium directly to car leasing company, the appellant admittedly deducts the exact amount from the salary of the employees concerned, i.e., to the extent of cost incurred towards the leasing of cars by the Company - mere extending the car lease facility does not qualify as a perquisite; a value in monetary terms is required to be extended to the employees; and the value of perquisite for consideration is restricted to the value of actual monetary gain extended as in Form 12BA. The contention of the appellant that extending the facility of car lease is nothing but a benefit extended to the employees, is not sustainable - the view of the appellant that the car lease amount is not recovered from the employee and is part of the overall compensation/CTC and that the cost of such facility is eventually borne by the company, is partly misconstrued and misplaced - a ‘perquisite’ is not just about providing a car facility and claiming back or recovering the cost of the car or the leasing of car. Rather, it is about providing facilities free of charge or on concessional basis, so that the facilities extended are seen as benefits at the hands of the employees - only the actual value in monetary terms extended to the employee concerned in the course of or in relation to employment, qualifies as a ‘perquisite’ whereas the car lease amount recovered in actual terms by the appellant-company while extending the facility of car to its employees, cannot be considered as a ‘perquisite’ and accordingly liable to GST – the AAR order is modified accordingly
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