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Applicability of gst on amount recovered from employee

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2017 Dear Experts,
I'm working as HR Head in one of the reputated company. As per our company policy if any employee going to abandon the job the concern employee have to issue the one month notice & have to completed the period thereof or the one month salary Basis+DA in lieu of notice period. Sometime employee seeks the early relieving hence they express their inability to comply this policy of exit. therefore we do recover the amount from tham in lieu of notice period their basis+DA,

Pls let me know whether the said amount recovered from the concerns employee in lieu of notice period will attract the Any GST applicability under RCM,

Thanks & Regards
Ankur Agarwal

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 September 2017 Basically any payment under employment agreement not atttact GST. Further amount you have asked is recovery and nature of income to the company so GST wont apply either normal or RCM category

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