https://www.taxtmi.com/article/detailed?id=11406 GST treatment of notice pay depends on characterisation: if the employer's receipt is consideration for tolerating an employee's breach it constitutes a Schedule II supply and attracts GST, given related party treatment under the CGST Act; if the amount is an incidental component of employment services falling within Schedule III's exclusion for services by an employee to the employer, GST does not apply. Contract terms and notice pay policy determine which regime applies, and employers may document reasons or seek departmental confirmation before discontinuing GST deductions. en-us Tue, 16 May 2023 10:18:49 +0530 Tue, 16 May 2023 10:18:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=11406 GST treatment of notice pay depends on characterisation: if the employer's receipt is consideration for tolerating an employee's breach it constitutes a Schedule II supply and attracts GST, given related party treatment under the CGST Act; if the amount is an incidental component of employment services falling within Schedule III's exclusion for services by an employee to the employer, GST does not apply. Contract terms and notice pay policy determine which regime applies, and employers may document reasons or seek departmental confirmation before discontinuing GST deductions. Articles Goods and Services Tax - GST Tue, 16 May 2023 10:18:49 +0530 https://www.taxtmi.com/article/detailed?id=11406