TaxTMI 
TaxTMI 
2020 (11) TMI 1083
X X X X Extracts X X X X
X X X X Extracts X X X X
....y on salary recovery/STDR forfeiture. 2. Facts of the case:- The applicant is a registered tax payer as artificial judicial person registered under circle-1 Raipur engaged in the banking and financial service provision under HSN 00440173. Whether, GST is payable on any amount recovered/forfeited from employees who are leaving the services without serving notice period/ resigning during probation period. 3. Contentions of the Applicant: -The applicant's contention is as under :- 3.1. that, one of their ex-employee has filed an RTI recently and the Department of Excise and Custom have replied that service tax/ GST is not payable in case of salary recovered for not serving the notice period. The said departmental view is als....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce i) GE T & D India Ltd, v/s DCCE Chennai - Madras High court. (ii) HCL Learning Ltd. V/s Commissioner of CGST Noida - CESTAT ALLAHABAD. 03. Reply of on RTI Application in this regards by CBECE dated 13.05.2020. 3.4. Going through the all above justifications supported by various case laws and departmental reply, we have of the firm opinion that GST is not leviable on amount recovered/forfeited from employees who are leaving the services during probation period. 4. Personal Hearing:- Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant and accordingly their authorized representative Shri Suresh Agrawal, C.A. attended the personal hearing, bef....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wages. b. The levy under the CGST Act, 2017 is on "supply" of goods or services or both. In order to attract the levy under Sec.9 of the CGST Act, 2017, the taxable event of "supply" must have taken place. Section 7 of the CGST Act, 2017 defines the scope of "supply" i.e. in a given case if there is no "supply" within the meaning of Section 7 of CGST Act, 2017, there is no scope of any levy of GST under Section 9 of CGST Act, 2017. c. Further, Clause (a) of sub-Section (1) of Section 7 of the CGST Act, 2017 envisages that the expression "supply" includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business [and]; (c) the activities specified in Schedule I, made or agreed to be made without a consideration [****]; (d) [****] [(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.] (2) Notwithstanding anything contained in sub-section (1),-- (a) activities or transactions specified in Schedule III; or (b) such activiti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng and gambling. [7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Explanation [1].-For the purposes of paragraph 2, the term "court" includes District Court, High Court and Supreme Court. Explanation 2.--For the purposes of paragraph 8, the expression "warehoused goods" shall have th....