Employee contracts need to be re-worded post GST

Consideration, whether in cash or otherwise, paid to employees, termed as Cost to Company (CTC) for work done during employment, is exigible to income tax and not indirect taxes. In terms of the GST legislation, consideration paid by an employer to the employee (i.e. salary) for rendering services in the course of employment would not be liable to GST. However, the GST law does not provide clarity…