Employer is liable to pay GST@18% on recovery of Notice Pay from the employees.
Last updated: 20 January 2021
Court :
Gujrat AAR
Brief :
The applicant submitted that they are a 100% Export Oriented Unit (EOU) engaged in the manufacturing of pharmaceuticals products. They, at the time of appointing any employee at their factory situated at 882/1-871, Ground Floor, Near Hotel Karnavati, Sarkhej-Bavla Highway, Village-Rajoda Bavla, Ahmedabad-382220 (Gujarat), are entering into contract with employees by issuing “Appointment Letter”.
Citation :
ADVANCE RULING NO. GUJ/GAAR/R/51/2020
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