RSM India

Newsflash - Applicability of GST on Payments made to Directors

Under the GST laws, there is no clarity on the applicability of GST on payments made by companies to its directors. Many taxpayers have based on their interpretation taken a conscious stand on levy of GST on director related payments.

Recently, the Authority for Advance Ruling of Karnataka, in the case of M/s Anil Kumar Agrawal observed that services of executive director is not a supply by virtue of Schedule III to the CGST Act, 2017 and would not attract GST. However, services of non-executive directors are a taxable supply of services and are covered by reverse charge provisions.

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