18% GST on Notice Pay Recovery : Gujarat Authority of Advance Ruling

By | January 14, 2021
(Last Updated On: January 14, 2021)

18% GST on Notice Pay Recovery

Where employee failed to serve the notice period after tendering the resignation, and as per contract (Appointment Letter) condition, company entitled to recover the notice pay from the agreed portion of salary to compensate the loss to the company, the Gujarat AAR held that the employer would be liable to pay GST on recovery of Notice Pay from the employees.

ADVANCE RULING NO. GUJ/GAAR/R/51/2020

Date: 30.07.2020

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