GST on recovery of Notice Pay from employees

In re Amneal Pharmaceuticals Pvt. Ltd. (GST AAR Gujrat)

Whether the applicant is liable to pay GST on recovery of Notice Pay from the employees who are leaving the company without completing the notice period as specified in the Appointment Letter issued as per the contract entered between Employer and the Employee?

We find that said Notice Pay is nothing but the amount stipulated in the employment contract for breach in serving (not serving) the stipulated notice period.

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