No GST payable on recoveries made from employees for providing bus transportation facility

The Applicant is procuring bus transportation services, for transportation of its employees in Non-AC buses, from a third-party bus transportation service provider who issues tax invoice with applicable GST to the Applicant. Applicant recovers subsidized amount for the said transportation facility from its employees.

The Applicant is not engaged in the business of bus transportation and accordingly, the said facility provided by the Applicant to its employees does not amount to supply under the GST regulations.

Without prejudice to the above, the bus transportation facility provided by Applicant is excluded from the scope of supply in terms of Clause (a) of Section 7 (2) of the CGST Act.

Hence, it is held that GST would not be payable on the recoveries made from the employees towards providing bus transportation facility.