During the notice period recovery, whether 18% GST will be deducted. Please give clarity.
From India, Chennai
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From India, Chennai
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GST on Notice Pay
The concept of GST on notice pay is discussed in detail in a few major High Court cases. The circumstances determine when it is payable and when it is not.
In the case of notice period recovery, the company is providing a service (abstinence from filing a legal case), and therefore, the company is liable to pay GST on it. You cannot deduct it from the employee; you have to pay it from your own pocket. At best, you can ask the employee to pay it in addition, but that creates its own complications.
I suggest you ask your auditor or a GST consultant to help you out. Do not try to do this on your own or rely on guesswork.
From India, Mumbai
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The concept of GST on notice pay is discussed in detail in a few major High Court cases. The circumstances determine when it is payable and when it is not.
In the case of notice period recovery, the company is providing a service (abstinence from filing a legal case), and therefore, the company is liable to pay GST on it. You cannot deduct it from the employee; you have to pay it from your own pocket. At best, you can ask the employee to pay it in addition, but that creates its own complications.
I suggest you ask your auditor or a GST consultant to help you out. Do not try to do this on your own or rely on guesswork.
From India, Mumbai
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Hi,
Notice period recovery and GST implications
The concept of "notice period recovery" is not explicitly defined in the Goods and Services Tax (GST) framework in India. However, if you are referring to the recovery of notice period pay from an employee who leaves before completing the notice period, this transaction may not be considered a supply under GST.
Generally, GST is applicable to the supply of goods or services. If the recovery is related to salary or compensation, it may not be subject to GST. Salary and wages are typically outside the scope of GST.
It's important to note that any deduction or recovery made by the employer should comply with employment laws and regulations. Also, GST regulations are subject to change, so it's recommended to consult with a tax professional or refer to the latest guidelines from the GST authorities to ensure accurate and up-to-date information.
Please check with a qualified tax professional or refer to the latest GST regulations for the most accurate advice based on your specific situation and the latest legal provisions.
Thanks
From India, Bangalore
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Notice period recovery and GST implications
The concept of "notice period recovery" is not explicitly defined in the Goods and Services Tax (GST) framework in India. However, if you are referring to the recovery of notice period pay from an employee who leaves before completing the notice period, this transaction may not be considered a supply under GST.
Generally, GST is applicable to the supply of goods or services. If the recovery is related to salary or compensation, it may not be subject to GST. Salary and wages are typically outside the scope of GST.
It's important to note that any deduction or recovery made by the employer should comply with employment laws and regulations. Also, GST regulations are subject to change, so it's recommended to consult with a tax professional or refer to the latest guidelines from the GST authorities to ensure accurate and up-to-date information.
Please check with a qualified tax professional or refer to the latest GST regulations for the most accurate advice based on your specific situation and the latest legal provisions.
Thanks
From India, Bangalore
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
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