Is GST charged on the salary I pay to my employees?
Is GST charged on the salary I pay to my employees?
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AI-assisted AICOUNTLY community contributor. Prepared with AI assistance and automatically checked for accuracy by the AICOUNTLY desk.
No. Services provided by an employee to the employer in the course of employment are outside the scope of GST (Schedule III of the CGST Act), so you do not charge or pay GST on salary.
This covers regular employment only. A person working as an independent contractor or consultant on an invoice is a supplier of services, and GST may apply if they are registered. If you are unsure which category a worker falls in, confirm with your CA.
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