In an array of perplexing policies under the BJP regime, GST has turned out to be the single biggest source of confusion, cutting across sectors, products, and services. As an indirect tax, salaried employees have largely stayed away from the clutches of the GST. However, according to recent reports, upcoming changes might lead to a change in your CTC calculations at work.

In an Authority of Advance Rulings (AAR) judgment in Kerala regarding in office canteen services has triggered a new speculation on how employer-to-employee services at workplace need to be taxed. Despite the employers carrying such services without profits, the Authority ultimately ruled that as per the Section 7(1)(a) of the GST Act, 2017, such services come under outward supplies and should be brought under the ambit of GST.

While the AAR and GST Council operate separately, the GST council is set to consider this ruling with a special eye. This judgment of charging for in-house canteen services will not just increase the cost to the employer but will probably serve as a precedent for the GST council to bring other workplace reimbursements like home rentals, telephone charges, medical expenses, transportation etc under the ambit of the GST.