GST on Notice pay received from employees

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109 Points Posted on 12 April 2021
The employees who leave the company without completing the notice period as per appointment letter, we have being recovering the notice pay.

Is it applicable GST, kindly share yours views.
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On 12 April 2021 at 12:47 Report
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This discussion explores whether Goods and Services Tax (GST) is applicable to notice pay recovered from employees who leave their jobs without serving the full notice period as stipulated in their appointment letters. Guidance from Advance Ruling No. GUJ/GAAR/R/51/2020 suggests that employers are indeed eligible to collect GST at a rate of 18% on such recovered notice pay.

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Job
15 Points Posted on 12 April 2021
As per Advance Ruling No. GUJ/GAAR/R/51/2020, dated July 30, 2020, Employer is eligible for collection of GST on notice pay recovered @ 18%....
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On 12 April 2021 at 13:19
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Chartered Accountant
24588 Points Posted on 12 April 2021
GST at the rate of 18% is applicable on recovery of notice pay from the employees who leave the company without completing the notice period as per the appointment letter.
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On 12 April 2021 at 14:14
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109 Points Posted on 12 April 2021
Thank you sirs
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On 12 April 2021 at 18:03

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