Dear Experts,
Two companies are related. i.e. ABC Private Limited and XYZ Private Limited.
An employee of the company (ABC) is permanently transferred to another company (XYZ). Subsequently, accrued Gratuity liability of the employee is also transferred from ABC to XYZ. Money is transferred.
Is GST applicable for this transaction? Please provide your views.
Saravanan.
GST Not Applicable on Employee and Gratuity Liability Transfer Between Related Companies, Experts Agree An employee is permanently transferred from ABC Private Limited to XYZ Private Limited, and the accrued gratuity liability is also transferred between these related companies. The query raised concerns whether GST is applicable on this transaction. Multiple experts, including DR. MARIAPPAN GOVINDARAJAN, Alkesh Jani, YAGAY and SUN, and KASTURI SETHI, agreed that GST is not applicable in this scenario. The discussion reflects a consensus among the participants that the transfer of employee and gratuity liability between related companies does not attract GST. (AI Summary)
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