Job hoppers may have to pay GST for not serving the notice period. Details here
- As per recent ruling of AAR, it is responsibility of the recruiters to pay GST through reverse charge mechanism on the recoveries from the employee during notice period, say experts
Job hoppers may have to pay Goods and Services Tax (GST) if they don't serve the notice period mentioned in their offer letter at the time of recruitment. The Authority of Advance Ruling (AAR) at GST has said in its recent ruling that GST can be levied on various recoveries from the employee for not serving the notice period. These recoveries include pay during notice, group insurance, telephone bill, etc. In short, an employee will be liable to pay GST on its monthly salary for not serving the notice period.
Login to enjoy exclusive benefits!
- Unlocked premium articles
- Personalized news
- Market Watchlist
- Insightful Newsletters & more