Employees who choose to pass their full notification period while quitting the work may have to pay taxes and service taxes (GST) in their last salary, a report said on December 3 quoted a recent order issued by the authority of the advanced ruler (AAR).

Aar, while ruling in the case of the Bharat Oman’s refinery, said GST can be collected in certain recovery made from employees during the traditional notification period, the economic period has reported on November 30.

Recovery that applies to taxes, according to orders, including payment of notifications, group insurance and telephone bills, the newspaper said.

According to the AAR decision, the above recovery is taxed as a “providing service” company to an employee, the report said.

Quoting this verdict, experts who speak with live mint say the final salary drawn by an individual from the company will also apply to GST.

“The employer can charge 18 percent of GST in the total recovery obtained by employees who leave the organization without serving the notification period,” the newspaper said quoting a tax expert and the investment of Solanki peers.

Solanki, however, explained that the employee was responsible for paying GST only when he had not served a notification period. When the notification period has been resolved by the employee, it is an employer who has to pay GST on the recovery conducted during this period, he reportedly said.

Experts suggest that employees must carefully read the offer letter while joining a company, because they will be asked to complete the notification period as mentioned in it to avoid paying GST on the final salary.