I was working in an IT private company in Bangalore. The official notice period was 2 months, but I served only one month. Now, in the final settlement, the company is telling me to pay for that one month of unserved notice. The main issue is that HR is asking for that one month's gross salary. Additionally, they are adding 18% GST on the gross salary. I just want to know if this aligns with government rules because when I asked HR, she told me it is. What should I do now? Please suggest. If anyone has the right information, please provide.
From India, Bengaluru
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Hi, Company has not terminated me. I only resigned. And salary has defined from Gross after some deductions (PF, tax) monthly net I was getting. Are these related to the question I have asked? Because I want to know if it is legal for them to ask for the Full Gross salary for 30 days including 18% GST on that.
From India, Bengaluru
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Aks17
119

Regarding the calculation of gross or basic salary for the notice period, it depends on the terms outlined in your employment letter. There is no GST applicable to salaries for employees. You can ask them to provide the specific rule under which they are to be paid [GST]. If they provide it in writing, you can then deduct accordingly and lodge a complaint with the GST authorities.

Although an employee may be considered to be providing 'services' to the employer, it is not the same as the rules under Goods & Services Tax for services. Only consultants such as CAs, CS, and Tax Practitioners are subject to GST for their professional services.

Thanks and Regards

From India, Hyderabad
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Dear,

First of all, there is no question of GST because GST is not applicable on salary. Please go through your appointment letter carefully. Normally, a notice period of one or two months is given after the confirmation letter. Have you received the confirmation letter, or were you on the probation period? During the probation period, the notice period is very short, either 15 days or 30 days.

Thanks

From India, Delhi
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Hi all,

Thanks for the replies. Regarding GST applicability proof, they have sent me an email stating that their auditor had advised the calculation. I am not in a provision period, so the notice period is only 2 months. However, there is no mention of the payable unserved notice period. I have also requested this information from the Head of HR, but he has also mentioned the same.

Where should the details about the payable unserved notice period be mentioned? I did not receive any information on this matter in my employment offer letter!

From India, Bengaluru
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Dear Freind, The unserved periond is nothing but shortfall in notice period, which needs to be waived by your Employer or equivalent salary has to be paid by you please.
From India, Hyderabad
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