Partial recovery of Mobile phone from employee-GST Input

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..... Partial recovery of Mobile phone from employee-GST Input
Query (Issue) Started By: - ROHIT GOEL Dated:- 10-11-2020 Last Reply Date:- 10-11-2020 Goods and Services Tax - GST
Got 2 Replies
GST .....

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Dear sirs, As per policy of one of our clients, they provide mobile phone to employees as per their pay scale. For example, Scale A employees are allowed phones upto ₹ 10,000/-. If employee .....

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..... intends to purchase more expensive mobile, say for ₹ 15000, then balance of 5,000/- is recovered from him. Now in effect, mobile is capitalised by 10,000/- in books but GST ITC is taken on ent .....

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..... ire invoice value of 15000. Whether this is correct or instead recovery of 5000/- should be treated as sale and corresponding ITC reversed? Reply By Rajagopalan Ranganathan: The Reply: Sir, Since y .....

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..... ou are recovering ₹ 5000/- from your employee for all practical purpose the consideration in excess of 10000/- is paid by the employee. Therefore ITC of gst paid on ₹ 5000 belongs to the e .....

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..... mployee. Therefore you have to reverse the ITC of gst paid on 5000/-. The moot question is whether you recover ₹ 5000/- along with gst paid on such amount or not. Reply By Ganeshan Kalyani: Th .....

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..... e Reply: Sir, if the asset is capitalised with GST then ITC cannot be taken.
Discussion Forum - Knowledge Sharing .....

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