Good afternoon to all,
Request your concern on the employee notice period recovery issue related to GST.
Is GST applicable on notice recovery amount, If it is applicable kindly provide the clause.
Thanks & Regards
Koteswara Rao
From India, Chennai
Request your concern on the employee notice period recovery issue related to GST.
Is GST applicable on notice recovery amount, If it is applicable kindly provide the clause.
Thanks & Regards
Koteswara Rao
From India, Chennai
Hi
Recovery of notice pay from dues of employee / payment of notice pay by the employee who could not serve the notice for the period as per contractual agreement / appointment letter does not amount to supply and therefore as per Section 7 (1A) of the CGST Act, 2017, the provisions of Schedule II does not come into play. Thus, also relying on the reasoning and decision given by the MPAAAR, mentioned above and the decision of the Hon’ble Madras High Court in W.P. Nos 35728 to 35734 of 2016 in the case of GE T&D India Ltd Vs Deputy Commr of Central Excise, LTU, Chennai – 2020-VIL-39-MAD-ST, we hold that, the notice pay recovered by the applicant from its employees is not liable to GST.
Source Taxguru.in
From India, Madras
942Recovery of notice pay from dues of employee / payment of notice pay by the employee who could not serve the notice for the period as per contractual agreement / appointment letter does not amount to supply and therefore as per Section 7 (1A) of the CGST Act, 2017, the provisions of Schedule II does not come into play. Thus, also relying on the reasoning and decision given by the MPAAAR, mentioned above and the decision of the Hon’ble Madras High Court in W.P. Nos 35728 to 35734 of 2016 in the case of GE T&D India Ltd Vs Deputy Commr of Central Excise, LTU, Chennai – 2020-VIL-39-MAD-ST, we hold that, the notice pay recovered by the applicant from its employees is not liable to GST.
Source Taxguru.in
From India, Madras
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Order No. 1-2018 Extension of date for submitting the statement in FORM GST TRAN-2.pdf