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Gst on Directors remuneration

rohan laddha (student) (52 Points)

27 August 2018

Is GST Applicable on Directors remuneration on RCM basis?
[ like Service Tax scenarios ]

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14 Replies

gnv satish (46 Points)
Replied 27 August 2018

Yes, there is no change on reverse charge provisions under Section 9(3) of CGST/ SGST Acts, Section 7(3) of UTGST Act and Section 5(3) of the IGST Act, relating to GTA, Legal Services provided by an Advocate, etc. and for that reason only it’s called to be a partial suspension of RCM.

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NIRAJ (NA) (22 Points)
Replied 27 August 2018

No gst is not applicable , as there is employer employee relationship in case of remuneration paid
however anything paid other than that would attract RCM

Shivam RC (Student) (23683 Points)
Replied 27 August 2018

Yes. GST applicable on Directors Remuneration under REVERSE CHARGE MECHANISM of Section 9(3) vide Notification No. 13/2017, CT.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 August 2018

I agreed to Mr NIRAJ.,

GST not applicable for the Director Remuneration...

GST not levied in Salaries.

gnv satish (46 Points)
Replied 27 August 2018

If remuneration is paid as professional fee and and TDS is getting deducted under 194j GST is applicable, if it is salary and TDS is under 192 GST not applicable

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 August 2018

Remuneration can't be treated fees....
It's only based on salary and GST not applicable...

Shivam RC (Student) (23683 Points)
Replied 27 August 2018

Sir if Director receives (say ₹ 20,000) for attending a Board Meeting from the Company, then what is the GST scenario?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 August 2018

The Answer is inside the Your Query Mr Shivam RC...

Better to understand Remuneration and Above said board meeting incentives to Director...

Shivam RC (Student) (23683 Points)
Replied 27 August 2018

Sir then only Remuneration part of the Director will not attract GST reason being that the service is provided in the course of or in relation to his employment, which is not treated as a SUPPLY, as per Para 1 of SCHEDULE III of the CGST Act 2017.

Anything other than Remuneration received by the Director from the Company will attract GST under RCM vide Notification No. 13/2017 CT.

Is it Correct now Sir?

2 Like

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 August 2018

Services provided by Director of a company to the company is covered under reverse charge services notified on 28th of June, 2017 but

As per sec 7(2) of IGST Act Supply EXCLUDES services supplied by an employee to the employer in the course of or in relation to his employment.

Whole time director is considered as an employee of the company and commission received by him is in the course of his employment.