Last post July 18, 2017 14:33 PM by gkv. 1 repiles.
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?
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.
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.
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.