GST on Recovery of Joining/Retention Bonus & Work from Home Allowance

In re Fidelity Information Services India Private Limited (GST AAR Karnataka) 

In a recent ruling, the GST AAR Karnataka addressed crucial questions regarding the taxation of various employee benefits such as joining bonus, retention bonus, and work from home (WFH) allowances. Fidelity Information Services India Private Limited sought clarity on whether GST applies to the recovery of these bonuses and allowances if employees exit before serving a pre-agreed period.

i. The Company recovers joining bonus and retention bonus on account of employee’s inability

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