AARs give divergent rulings on notice pay recovery by employers

No GST on such collections in Maharashtra, regarded as service in MP and taxed, money received from employees for medical insurance to non-dependent parents to draw GST too

If a company is in Maharashtra, it need not pay goods and service tax (GST) on the money recovered from employees who leave without serving the notice period. But that may not be the case in Madhya Pradesh.

Syngenta India Limited, a company engaged in the manufacturing of pesticides and various types of seeds, recovers money from employees if they leave the job without serving the complete notice period.

The company offers various incentives to its employees as a part of the employment policy like a group insurance policy, parental insurance policy. For the same, it recovers the amount from