The number of employees leaving the company has increased dramatically in india due to the high demand for employment and talented employees in many sectors, including the IT sector.

Many projects are stagnant, especially in the IT sector as employees in all the leading IT companies are constantly leaving and unable to take up new projects.

Notice Period

The biggest hurdle in this process is an employee's notice period, which means that an employee can join a new company only after giving one, two or three months' notice before leaving the company.

Payout for Notice Freight (Buyout)

But due to the high demand for employees in the market, the new hiring companies pay the employee's notice frequency and immediately hire the employee. It is a jackpot for both employees and the new employer.

18 per cent GST tax

A new order has been issued requiring the payment of 18 per cent GST along with the payment of the employee's notice freight. This places an additional burden on both the employee and the company that pays the notice freight.

Bharat Petroleum

In a recent case involving Bharat oman Refinery, a subsidiary of Bharat Petroleum, the GST was levied on all telephone bills paid by the company, employee insurance and group payroll payments, according to the Federal Direct Taxes and Customs Tax Authority's Advance Ruling. Has been announced.

Service provided by the company to the employee

Notice of payment by the employee in order to complete the notice period in a short period of time is a type of service provided by the company to the employee, which is subject to mandatory GST tax. The company will have to pay 18 per cent GST on the service.

GST is mandatory 

An employee who plans to leave the company as soon as possible will have to pay the salary for the notice period and pay 18 per cent GST tax on that amount. So plan ahead when leaving the company.