New twist on notice period: If you are leaving your job, read this first

GST on Notice Period: If you're planning to leave your job, there is an important update for you. Now, if you leave the job before completing the notice period, you will have to pay 18% GST. Usually, when an employee leaves a job without completing the notice period, he or she is required to pay some amount to the company for the remaining period.

Now, salaried employees who leave their job without completing the notice period will have to pay a fixed amount to the company, as well as 18 per cent GST to the government. 

The major decision was taken by the Gujarat Authority of Advance Ruling. As per the ruling, the employee leaving the company without completing the notice period will have to pay 18% GST along with paying the salary amount to the company for the remaining period.

The Authority was hearing a case in which an employee of an Ahmedabad-based company Amneal Pharmaceuticals demanded advance ruling in which the employee wanted to leave the job without completing the three-month notice period. On this, the authority decided that if an employee leaves the job without completing the notice period written in the appointment letter, then he will have to pay 18% GST.

Usually, the company mentions a notice period in the employee's appointment letter which can be different according to each position and position. When an employee leaves the job, he has to work for that notice period, so that the company can arrange for his replacement. If an employee works less than his notice period, then the company asks him to pay for it.