Got new job? Resigned? Not serving notice period? Be ready for this GST penalty shocker slapped on employees

This is a piece of important news for you if you have resigned from your current company or planning to resign soon owing to a new job, and in the wake of it planning to skip the serving of notice period. Now, according to the latest development, leaving your current company may cost you heavily in terms of GST penalty as you may have to pay 18% GST on the recovery amount.

As per a ruling by Gujarat Authority of Advance Ruling, 18% GST will be applicable on the recovery amount if an employee exits the current company without serving the notice period.

More details are here in these videos below:-

The notice period of a particular company is the time period between when an employee resigns from the current company till the time of the last working day. Generally, most of the companies give this time period to the employee before the official employment ends.

The notice period is meant for various purposes like handover of important assignments that are being handled by the exiting employee or in case she or he is involved in some important or crucial projects. Basically, a notice period of any company is meant for the smooth transition of work from one employee to another.
As a standard practice, it is advised that an employee should serve the given notice period.