Hi Team,
Can somebody educate me on 18% GST on recovery amount from employees? My notice period was for 2 months, and I served it for 1 month. Now the components that I read online that come under 18% GST amount do not fall under part of my CTC or any goods and services provided by the company.
Kindly help me to know more about it. I am frustrated with the replies that I am getting from the finance team of my ex-company, and my experience letter is stuck.
Thanks.
From India
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Can somebody educate me on 18% GST on recovery amount from employees? My notice period was for 2 months, and I served it for 1 month. Now the components that I read online that come under 18% GST amount do not fall under part of my CTC or any goods and services provided by the company.
Kindly help me to know more about it. I am frustrated with the replies that I am getting from the finance team of my ex-company, and my experience letter is stuck.
Thanks.
From India
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Notice pay recovery is a consideration paid by employee to employer for non-performance of a term of contract of employment.
Therefore this becomes a taxable service falling under the head “Agreeing to tolerate an act” SAC Code 999794- GST 18%. If in appointment letter, it is stated that Notice pay will be recovered with GST, then it will be recovered from employee, otherwise it will be deemed that, GST is inclusive as per Rule 35 of CGST Rules, 2017 and the GST component will be borne by company itself.
https://www.gstbazaar.com/sac-codes/code/999794
From India, Pune
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3180Therefore this becomes a taxable service falling under the head “Agreeing to tolerate an act” SAC Code 999794- GST 18%. If in appointment letter, it is stated that Notice pay will be recovered with GST, then it will be recovered from employee, otherwise it will be deemed that, GST is inclusive as per Rule 35 of CGST Rules, 2017 and the GST component will be borne by company itself.
https://www.gstbazaar.com/sac-codes/code/999794
From India, Pune
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In my case, my appointment letter did not mention anything about the GST. However, my old company still charged me GST at 18%. Since I did not have time to get relieved, I paid the amount as many of my colleagues did. Now that I have been relieved, my full and final settlement will be processed by the end of this month, which is 30th July 2018, along with my salary. If I want to discuss and pursue legal action to claim the excess amount that was charged to me, how should I proceed?
From India
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From India
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Hello Team,
Please, could somebody guide me on the recovery amount from employees? My notice period was for 2 months, and I served it for 1 month. However, now my HR has issued my FNF cheque, and in that amount, they have charged 18% GST. I would like to know if the 18% is applicable to FNF and when this policy was implemented. Kindly, guide me on these matters and provide a reply.
Regards,
Meghana.P
From India, Mumbai
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Please, could somebody guide me on the recovery amount from employees? My notice period was for 2 months, and I served it for 1 month. However, now my HR has issued my FNF cheque, and in that amount, they have charged 18% GST. I would like to know if the 18% is applicable to FNF and when this policy was implemented. Kindly, guide me on these matters and provide a reply.
Regards,
Meghana.P
From India, Mumbai
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx