As per Clause I to the Schedule III of the CGST Act, Services by an employee to the employer can neither be treated as supply of goods nor services. In the case of transportation/food provided to employees, the employer incurs the entire expenditure and recovers a nominal amount from employees. The transportation/food is only provided to employees and not to outsiders. So it is deemed that it is provided in the relation to employment. Therefore, as the principal activity of providing transport/food is not a supply in GST Act, the incidental activity will also not form part of the supply and hence not liable under GST