Job employee notice period rule 18 percent GST

Picture Supply : PTI

18% GST on non-completion of notice period


There is a crucial replace for salaried workers who’re planning to go away their jobs with out serving the stipulated notice period. As per the brand new guidelines, workers should pay 18 percent of products and companies (GST) tax on the pay recovered for the notice period length.

Based on the Gujarat Authority of Advance Ruling, the employee leaving the corporate with out finishing the notice period should pay 18% GST together with paying the wage quantity to the corporate for the remaining period.

This rule got here throughout a case listening to held by the authority during which an employee of an Ahmedabad-based firm Amneal Prescription drugs demanded an advance ruling. The employee had demanded that he wished to go away the job with out finishing the three-month notice period.

Whereas listening to the case, the authority determined that the outgoing employee will both should serve the notice period talked about within the appointment letter or should pay a further 18 percent GST together with paying the wage quantity to the corporate for the remaining period.

Any firm or organisation mentions a notice period within the employee’s appointment letter, that varies based on the corporate’s requirement and place in order that the corporate can organize for his substitute. Due to this fact earlier than leaving the corporate, any employee has to work for that notice period. If he/she is unable to serve the notice period or works lower than the talked about period within the appointment letter, he/she will probably be liable to pay for the remaining days or period.

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