Title: - Death compensation to employee

[SOPL SOPL]

Title: - Death compensation to employee

Dear Sir,

One of our employee met with an accident in the client work place, So client paid some amount to us we revert the same amount to employee relatives.

For this we raised Non-GST invoice to the client for Rs.,15,00,000/-

we know this issue is not liable for GST but, we didn't know the sections/references under which is not liable.

So explain the related references under which it is not liable.

Is comes under Schedule-III (not a supply) but there is no employer & ee relationship between client and us.

So pls specific relevant references under which it is not liable.

in GSTR returns, in B2B where we can consider i.e, nil rated or exempted

regards

Gowtham

AI Summary

Compensation for Employee's Fatal Accident Not Subject to GST; Classified as NON-GST Supply Under CGST Act. An employee suffered a fatal accident at a client's workplace, prompting the client to provide compensation, which was then transferred to the employee's relatives. A query was raised regarding the GST implications of this transaction. The response clarified that such compensation is not subject to GST as it does not qualify as income or consideration under the CGST Act. It is not considered a taxable supply and falls outside the scope of supply. The compensation should be categorized under NON-GST Supply in GSTR returns, as monetary compensation to employees is not regarded as a supply.