The Central Indirect Taxes and Customs Authority has recently passed a landmark judgement in the case of Bharat Oman Refineries, a subsidiary of Bharat Petroleum. According to this, employees are liable to pay GST on salaries received in lieu of notice period

Many industries including the Information & Technology are witnessing high attrition right now as companies are scouting for talent. Quitting a job without prior notice isn’t advisable as per career perspective. To retain employees, tech companies are also giving steep increments and more promotions. 

One may not care about being in the good books but you may end up paying GST for not serving the notice period.

As per a recent ruling in the case of Bharat Oman Refineries, which is a subsidiary of state-owned Bharat Petroleum, by the Central Board of Indirect Taxes and Customs' Authority of Advance Ruling (AAR), GST will be applicable on different employees' recoveries. These include telephone bills paid by companies, group insurance of the company employees, and payment of salaries in lieu of the notice period, according to a media report.