No GST leviable on free bus transportation facility provided to its Employees by the Employer

Last updated: 10 January 2025

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The Gujarat Appellate Authority for Advance Ruling (AAAR) has confirmed that employers do not need to pay Goods and Services Tax (GST) on free bus transportation provided to their employees, provided it's stipulated in their employment contract. The ruling also stated that input tax credit (ITC) on hiring buses with more than 13 seats used for employee transport is admissible.

Court :
AAAR, Gujarat

Brief :
The AAAR, Gujarat in the matter of M/s. Emcure Pharmaceuticals Ltd. (Advance Ruling (Appeal) No. GUJ/GAAAR/APPEAL/2024/09 dated December 30, 2024, dismissed the appeal filed by the Department and reaffirmed the ruling passed by AAR, Gujarat in the case of In Re: M/s. Emcure Pharmaceuticals Ltd. [GUJ/GAAR/R/2022/22 dated April 12, 2022], thereby ruling that Applicant is not liable to pay GST on free bus transportation facility provided to its employees. Further, it was ruled that the ITC on motor vehicle for transportation of person having approved seating capacity of more than 13 persons, not being blocked under Section 17(5)(b)(i) of the CGST Act, and thereby, could be availed by the Applicant.

Citation :
M/s. Emcure Pharmaceuticals Ltd. (Advance Ruling (Appeal) No. GUJ/GAAAR/APPEAL/2024/09 dated December 30, 2024

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5822_emcure_pharmaceuticals_ltd.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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