Fine and penalties from Employees

This discussion explores whether Goods and Services Tax (GST) is applicable on fines and penalties deducted from employees. The consensus suggests that if these deductions are part of the employment contract and fall under the course of employment, they are generally not considered a supply of goods or services, and therefore, GST is not applicable. However, if penalties are outside the scope of the employment terms, GST might be leviable as it could be considered a form of supply.