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Impact of GST on Payroll
Human Resources » Industrial Law & Discipline

Chrm Message From: vikas.bhalla Total Posts: 3 Join Date: 22/08/2016
Rank: Beginner Post Date: 17/07/2017 12:24:45 Points: 15 Location: India


I would like to know the impact, if any, of GST on the payroll and salary of employees .

Can someone share light on this please?

Thanks, Vikas

Chrm Message From: ramadhish.i Total Posts: 3 Join Date: 22/08/2016  
Rank: Beginner Post Date: 17/07/2017 12:29:02 Points: 15 Location: India

Dear Vikas,

GST is an indirect tax and as such has nothing to do with income tax or TDS. Therefore, it is more relevant for businesses and not for salaried people.  Having said,  the impact shall be on all the expenses pertaining to restaurants, movies, shopping, consulting and etc.


Chrm Message From: paromita_s Total Posts: 10 Join Date: 22/08/2016  
Rank: Beginner Post Date: 18/07/2017 13:51:00 Points: 50 Location: India

It is worth noting here that GST would be payable if there is a supply of free goods or services to an employee exceeding the stipulated sum, if an employee avails of a company asset for personal use (say , a car), it would trigger GST. 

Chrm Message From: gkv Total Posts: 16 Join Date: 22/08/2016  
Rank: Executive Post Date: 18/07/2017 14:33:33 Points: 80 Location: India

Dear all,

To add to response of Paromita, let me cite an example wherein if a company provides a car to an employee for his use (both official and private) the usage could be considered as a supply of service to the employee, which is a taxable event for GST.


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