GST at 18% must be charged on notice pay recovery from employees leaving early, says Authority for Advance Rulings.

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....100% EOU - Levy of GST - recovery of Notice Pay from the employees who are leaving the company without completing the notice period - Service of notice for termination of contract - the applicant is liable to pay GST @ 18% under the entry of “services not elsewhere classified, on recovery of Notice Pay from the employees who are leaving the company without completing the notice period as specified in the Appointment Letter - AAR....