in chapter supply under GST say that ,
(C) If services such as membership of a club, health and fitness centre etc. are provided free of charge to all the employees by the employer, the same will not be subjected to GST but same is said under ITC chapter so that activity which is not subject to GST how claim ITC in that activity ?
Dear Bhagav.
Under Chapter III ,Sub Section (1)(c) of Section 7 of CGST Act , the Activities pspecified in Schedule I , made with or without consideration is supply.
Now if we read schedule I .
1. Permanent Trf. or disposal of business Asset . Means if Asset is disposed off without consideration is levy of GST (Taxable value to be computed as per valuation rule)
2. Supply of Goods or Services between Related or distinct person.
Means supply between two branches is taxable even without consideration.
Provided : Gifts not exceeding 50K in Fy from employer to Employee shall not be treated as supply.
Now after reading above , supply can be with or without consideration..... Except activities provided in schedule III which are not cover under defination of Supply.
Yes membership of Club, Health & Fitness centre is Supply in GST , but ITC available or Block is depend upon the Supplier & Recepeint.
Now if supplier of such services will definitely charge GST on bill and If any company is Recepeint whose employees are availing such services , the company cannot avail ITC on same as it's block u/s 17(5) of CGST Act .
CAclubindia
