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Is GST applicable for skipping notice period and canteen food? It’s a yes and no
A recent decision by the Gujarat Authority for Advance Rulings has ruled in a case for imposition of 18 percent GST on the recovery of notice pay from employees who skip serving this period. A similar 5 percent GST is also applicable on food sold in canteens. January 13, 2021 / 06:38 PM IST
The Gujarat Authority for Advance Rulings (GAAR) has held that an employee exiting a company without completing their notice period would be liable to pay 18 percent goods and services tax (GST) on the recovery of the pay.