GST on Employee fines & penalties

No GST attracts .
can give reference of Judgment by Madras High Court: K.Selvamani Vs The Managing Director, Tamil Nadu State Marketing Corporation Ltd.

As provision under Schedule II : Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is not cover under the defination of Supply under Section 7 of CGST Act.

Sir, the penalties pertain to the Employees reporting late to work. The Madras High court judgement is for something else

The case of M/s Rashmi Metaliks Ltd. v. Commissioner of Central Tax, Kolkata-I (2019) examined the issue of whether the penalty imposed by an employer on an employee for loss of goods is liable to GST. The Kolkata High Court held that since the penalty was not in the nature of a supply of goods or services, it was not liable to GST.

In the case of Bhupendra Singh Charan v. Union of India (2019), the Rajasthan High Court considered the issue of whether penalties imposed by the employer on the employee for non-compliance with GST provisions are liable to GST. The court held that since the penalty was not in the nature of a supply of goods or services, it was not liable to GST.

The case of Rajesh Kumar Gupta v. Union of India (2020) examined the issue of whether the penalty imposed by an employer on an employee for non-compliance with GST provisions was subject to GST. The Madhya Pradesh High Court held that since the penalty was not in the nature of a supply of goods or services, it was not liable to GST.

In summary, the above cases suggest that penalties imposed by an employer on an employee for non-compliance with GST provisions or loss of goods are not liable to GST, as they are not in the nature of a supply of goods or services. However, it is important to note that the facts of each case may differ, and the interpretation of the law may vary depending on the specific circumstances