Gst on salary paid to staffs at branch office outside state

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2019
Sir

Please let me know weather GST is applicable on salary paid to staff

As branch offices to registered at head office are separate units having separate GST numbers it has been held that salary paid to employees in other states by employer in the state where registered head office is located is liable to GST.

For Ex: TN is H.O and Branch office or site in Gujarat (Salary paid to employees from H.O)

GST applicable for salary and what is the tax rate and HSN/SAC code.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 January 2019 GST not applicable on salary paid to employees of branch or head office.

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2019 Thank you sir

But one order was passed by Karnataka appellate authority for Advance Ruling kindly refer.Order no. KAR/AAAR/05/2018-19 dt. 12.12.2018.

kindly confirm the order was passed against salary paid to employees at branch office.
in this regards if GST is applicable for the above matter.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 January 2019 The above advance ruling is not acceptable as GST can't be levied on salary paid to own employees.