https://www.taxtmi.com/caselaws?id=755300 The AAR Karnataka ruled that recovery of joining bonus, retention bonus, work from home allowances, and Tuition Assistance Program expenses from employees who voluntarily exit before completing pre-agreed service periods is not taxable under GST. The authority determined these recoveries are similar to salary forfeiture or bond amount recovery upon early departure, which are non-taxable per GST Circular 178/10/2022. These payments constitute employee perquisites under contractual agreements between employer and employee, falling outside GST scope when recovered due to non-completion of service obligations. en-us Tue, 02 Jul 2024 00:00:00 +0530 Tue, 06 May 2025 12:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755300 The AAR Karnataka ruled that recovery of joining bonus, retention bonus, work from home allowances, and Tuition Assistance Program expenses from employees who voluntarily exit before completing pre-agreed service periods is not taxable under GST. The authority determined these recoveries are similar to salary forfeiture or bond amount recovery upon early departure, which are non-taxable per GST Circular 178/10/2022. These payments constitute employee perquisites under contractual agreements between employer and employee, falling outside GST scope when recovered due to non-completion of service obligations. Case-Laws GST Tue, 02 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755300