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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