GST applicability on Director’s remuneration clarified by CBIC

Circular No: 140/10/2020 – GST dated 10.06.2020 – CBIC has clarified that the remuneration paid to independent directors or directors who are not employees of the company is taxable in hands of the company on reverse charge basis. Further, the part of Director’s remuneration which is declared as ‘Salaries’ in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable under GST in terms of Schedule III of the CGST Act.