Canteen services provided by an employer to employees and pick up and drop services for which a company was not eligible for input tax credit under GST till now, may soon be able to avail the same.
The government on Monday proposed close to four dozen amendments to the GST Act, which would be presented to the GST Council in its meeting on July 21 and thereafter tabled before Parliament and state legislatures.
The finance ministry has invited stakeholders' comments on the proposal for amending GST Laws by July 15.
The amendments also include modification in reverse charge mechanism, simplification of return filing for companies and traders, differentiation of small and big businesses for the purpose of reverse charge mechanism and the likes.
In the new GST regime, until now employers were not allowed to avail input tax credit on certain facilities such as cafeteria, company transport and the likes which are provided almost free of cost to employees.
After the amendment in laws, employers will be permitted to claim input tax credit on these items but services like club membership, gym, beauty treatment, cosmetic and plastic surgery, life insurance and health insurance will not be able to enjoy input tax credit.
Under the proposed amendments, input tax credit will also not be available for travel benefits extended to employees on vacation such as leave or home travel concession. There will be no input tax credit on vehicles with capacity of over 13 vehicles.
As per another proposed amendments for ecommerce firms, they will not have to seek registration under GST provided their annual turnover is less than Rs 20 lakh and are not required to collect tax at source under Section 52.
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