2026-VIL-99-AAR
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SGST Advance Ruling Authority

GST – Tamil Nadu AAR - Scope of Supply - Transportation facility provided by an employer to its employees by engaging third-party transport service providers - Whether the nominal amounts recovered by the applicant from employees for the transportation services would be considered a "supply" under the CGST Act – HELD - The nominal amount recovered by the Applicant from employees for arranging the transportation services through a third-party transport service provider cannot be considered as a "supply" under Section 7 of the CGST Act, 2017. The transportation facility provided by the Applicant to its employees is a perquisite extended in terms of the contractual employment agreement, and services by an employee to the employer in the course of or in relation to his employment are excluded from the scope of supply under Schedule III of the CGST Act - Further, the transportation service is not provided by the Applicant on its own account, but is merely facilitated through a third-party service provider, and the recovery from employees is in the nature of cost-sharing, without any consideration element accruing to the Applicant. Thus, the basic parameters for an activity to be considered as "supply", i.e., supply should be in the course or furtherance of business and supply should be made for a consideration, are not fulfilled in the instant case. Accordingly, the Applicant is not liable to pay GST on the nominal amounts recovered from employees for the transportation services - Ordered accordingly
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GSTAT Appeal filed wrongly...
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