9.08 What means "Employee Benefits " to GST?

1. Any goods or services provided FREE to employees.

2. Goods or services acquired and given as employee benefits to employees are considered as used "for the purpose of business".

3. Generally, GST incurred on goods or services acquired and used for the purpose of his business in the making of taxable supplies (input tax) is claimable, and GST has to be accounted for on the taxable supplies made (output tax).

4. In general, for employee benefits,

- Input tax incurred is claimable

- GST needs to be accounted on goods provided free to employees