Employees liable to pay GST on salaries received in lieu of notice period, says an Advance Authority of Advance ruling
A recent ruling in the case of Bharat Oman Refineries, which is a subsidiary of state-owned Bharat Petroleum, said the GST will be applicable on different employees' recoveries.
These include telephone bills paid by companies, group insurance of the company employees, and payment of salaries in lieu of the notice period, The Economic Times reported. As per the definition of GST, the government charges a specific tax on any activity viewed as "supply of service". These services can either be direct or indirect.
