Free transport to work to face GST

Central Board of Indirect Taxes

NEW DELHI: The Haryana Authority of Advance Ruling (AAR) has said that free transport provided by an employer to ferry employees to work is subject to goods and services tax (GST), adding a fresh twist to an issue where some other states have taken a different position.

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The move also has implications for several employees who depend on office buses to ferry them from home or from the Metro stations in Gurugram and other locations. Following the ruling, an employer can choose to pass on the burden to employees or absorb it.