Quitting a job without prior notice isn’t advisable as per career perspective. You may not care about being in the good books but you may end up paying GST for not serving the notice period!
The decision isn’t official yet but there are talks regarding the same.
According to a Livemint report, GST can be charged on different recoveries from the employee for not serving the notice period, according to the Authority of Advance Ruling (AAR).
Pay GST For Not Serving The Notice Period
During any job interview, the HR team gives instructions regarding the notice period. So in case if an employee doesn’t serve the notice period, the person can never return to the same company in the future.
But now things are different, Employees may have to pay GST on quitting their job if they don’t serve the notice period mentioned in their offer letter at the time of recruitment.
Pay during notice, group insurance, phone bills, and so on are examples of these recoveries. In other words, if an employee does not serve the notice period, he or she will be responsible to pay GST on his or her monthly wage, according to the report.
Impact On Attrition Rate
In addition to rising attrition rates in the IT business, job applicants are now negotiating for better wage offers, they are looking forward to quitting their present job and going with the opportunity that pays them well. To retain employees, tech companies are also giving steep increments and more promotions.
Employees are leaving, and the majority are from Tier-I cities, according to a study conducted by the company, and thus slapping the attrition rate to the highest.
Might be the measure that can motivate employees to give a thought and make proper planning before leaving the company.
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