GST on Notice pay received from employees

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.
Replies (3)
Quick Summary
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.

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%....
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.
Thank you sirs

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