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I would like to know the impact of GST on the salary structure of the employees who join after the implementation of GST. What are the best practices what we could do in the salary structure to make this more win win for the employer and the employee.

The question is specific to the areas of reimbursements taking into account the new taxation system.

e.g How can the mobile reimbursements and driver, fuel, car allowances be incorporated in the CTC to make it more effective for both parties ?
11th July 2017 From India, Mumbai

Dear RAITON MENEZES ji,

I am not GST expert, still I try to give answer to your query on the basis of basic knowledge I acquired on GST.

Though there are many grey areas in some provisions in the GST, as far as salary is concern or the cost on employment is concern, there is no impact of GST, in general.

In case of supply of free goods or services to an employee exceeding the stipulated sum or if an employee avails of company asset for personal use say a car, a house etc., it would trigger GST.

The mechanism of input credit under GST i.e. input tax credit will not be available on supply of various facilities to employees, including life and health insurance.

You need to take expert advise on formulating CTC structure if it includes certain costs of facilities / fringe benefits.
11th July 2017 From India, Mumbai
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