Is GST applicable on notice period buyout in 2026?

No. The CBIC has clarified that notice period recovery is a 'consideration for tolerance of an act' and does not attract GST. Employers cannot legally charge you 18% GST on top of the buyout amount.

What is the 2-day F&F settlement rule?

The New Labour Code mandates that an employee's wages (including F&F) must be paid within two working days of their removal, dismissal, retrenchment, or resignation.

Notice Period BuyoutFY 2026-27

Calculate notice period shortfall liability and understand the latest GST and F&F settlement rules.

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Quick Summary: Notice Period Buyout

Under the New Labour Codes, your Full and Final (F&F) settlement must be paid within 2 working days of your exit. Per CBIC Circular 178/10/2022, no GST is applicable on notice period recovery (buyout) from employees. This tool calculates the exact basic salary liability for shortfall days.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.