There are certain activities which are items not covered under GST. They are beyond the scope of GST, i.e., GST will not apply on them. These are classified under Schedule III of the GST Act as “Neither goods nor services”.
Services by an employee to the employer in relation to his employment
Related parties include employer-employee which raised many concerns whether employment now attracted GST. This clarification has been brought in to clarify whether GST is not applicable on employment. An employee will still pay income tax on salary earned .
If any disposed goods are sold to staffs then GST will be charged as such transaction not covered under Schedule III of the GST Act.
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