{"id":3724,"date":"2025-05-07T17:33:13","date_gmt":"2025-05-07T12:03:13","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=3724"},"modified":"2025-05-07T17:33:13","modified_gmt":"2025-05-07T12:03:13","slug":"employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","title":{"rendered":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000396170\/recovery-of-transportation-charges-from-employees-constitutes-a-supply-of-service-and-assessee-is-not-eligible-for-itc-aar\">In re: Kion India Pvt. Ltd. (2025) 29 Centax 357 (A.A.R. - GST - Mah.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Shri D.P. Gojamgunde<\/strong> &amp; <strong>Ms Priya Jadhav<\/strong>, Members<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The applicant, a factory situated in a remote location outside the city limits where public transportation options are limited, arranges non-air-conditioned bus transportation services for its employees. To mitigate the cost, the applicant recovers a nominal amount from the employees&#8217; salaries for utilising the transportation facility. This arrangement was not backed by any statutory obligation, and the transportation service was not provided as a perquisite to the employees but as a paid service.<\/p>\n<p>The applicant approached the Maharashtra Authority for Advance Ruling (AAR) seeking clarification on whether the recovery of this nominal amount from employees for the transportation facility would be considered as a taxable supply under the Goods and Services Tax (GST) regime and whether the applicant could claim input tax credit (ITC) on the invoices issued by the transporter.<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p>The Hon\u2019ble Maharashtra AAR held that the recovery of a nominal amount from employees for providing transportation services indeed constitutes a supply of service under GST. The AAR clarified that the applicant\u2019s action of recovering the nominal amount from employees for transportation services, even at a nominal value, is considered as a taxable transaction under GST.<\/p>\n<p>The AAR noted that even though the service is provided for the employees&#8217; convenience, it involves the recovery of consideration for a service that qualifies as taxable under the GST law. It was further observed that the recovery from employees is not a perquisite but a charge for the transportation service. Consequently, the AAR ruled that the applicant is not entitled to claim Input Tax Credit (ITC) on the GST charged by the transport service provider as the transportation service is for the employees&#8217; personal convenience, not related to the business activity of the employer.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2020%20(32)%20G.S.T.L.%20608&amp;itemType=AP\">ION Trading India (P.) Ltd, In re<\/a> \u2014 2020 (32) G.S.T.L. 608 (A.A.R. &#8211; GST &#8211; U.P.) \u2014 Referred [Para 2.58]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: In re: Kion India Pvt. Ltd. (2025) 29 Centax 357&hellip;<\/p>\n","protected":false},"author":8,"featured_media":3730,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-3724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR<\/title>\n<meta name=\"description\" content=\"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR\" \/>\n<meta property=\"og:description\" content=\"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\" \/>\n<meta property=\"og:site_name\" content=\"Centax-Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/centaxindia\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-07T12:03:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"470\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kriti Sharma\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kriti Sharma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\"},\"author\":{\"name\":\"Kriti Sharma\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\"},\"headline\":\"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR\",\"datePublished\":\"2025-05-07T12:03:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\"},\"wordCount\":338,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg\",\"articleSection\":[\"GST\",\"News\",\"Case Chronicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\",\"name\":\"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg\",\"datePublished\":\"2025-05-07T12:03:13+00:00\",\"description\":\"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg\",\"width\":800,\"height\":470,\"caption\":\"GST on employee transportation\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.centaxonline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"name\":\"Centax-Blogs\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\",\"name\":\"Centax-Blogs\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"width\":536,\"height\":133,\"caption\":\"Centax-Blogs\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/centaxindia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\",\"name\":\"Kriti Sharma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"caption\":\"Kriti Sharma\"},\"url\":\"https:\/\/www.centaxonline.com\/blog\/author\/kriti\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR","description":"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","og_locale":"en_US","og_type":"article","og_title":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR","og_description":"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.","og_url":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","og_site_name":"Centax-Blogs","article_publisher":"https:\/\/www.facebook.com\/centaxindia","article_published_time":"2025-05-07T12:03:13+00:00","og_image":[{"width":800,"height":470,"url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg","type":"image\/jpeg"}],"author":"Kriti Sharma","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kriti Sharma","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#article","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar"},"author":{"name":"Kriti Sharma","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270"},"headline":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR","datePublished":"2025-05-07T12:03:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar"},"wordCount":338,"commentCount":0,"publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg","articleSection":["GST","News","Case Chronicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","url":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar","name":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg","datePublished":"2025-05-07T12:03:13+00:00","description":"AAR ruling on GST on employee transportation: Kion India must treat bus-fare recoveries as taxable supply; ITC on transport GST denied.","breadcrumb":{"@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#primaryimage","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/05\/1.-Employee-Transport-Charges-Recoverable-Under-GST-No-ITC-Allowed-AAR.jpg","width":800,"height":470,"caption":"GST on employee transportation"},{"@type":"BreadcrumbList","@id":"https:\/\/www.centaxonline.com\/blog\/employee-transport-charges-recoverable-under-gst-no-itc-allowed-aar#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.centaxonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Employee Transport Charges Recoverable Under GST; No ITC Allowed | AAR"}]},{"@type":"WebSite","@id":"https:\/\/www.centaxonline.com\/blog\/#website","url":"https:\/\/www.centaxonline.com\/blog\/","name":"Centax-Blogs","description":"","publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.centaxonline.com\/blog\/#organization","name":"Centax-Blogs","url":"https:\/\/www.centaxonline.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","width":536,"height":133,"caption":"Centax-Blogs"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/centaxindia"]},{"@type":"Person","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270","name":"Kriti Sharma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","caption":"Kriti Sharma"},"url":"https:\/\/www.centaxonline.com\/blog\/author\/kriti"}]}},"_links":{"self":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/3724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/comments?post=3724"}],"version-history":[{"count":2,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/3724\/revisions"}],"predecessor-version":[{"id":3727,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/3724\/revisions\/3727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media\/3730"}],"wp:attachment":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media?parent=3724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/categories?post=3724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/tags?post=3724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}