Directors Remmuneration

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This discussion clarifies whether Goods and Services Tax (GST) is applicable to remuneration paid to full-time directors. Generally, if the payment is treated as a salary, it falls under Schedule III of the GST Act and is therefore exempt from GST. However, if the remuneration is classified as professional fees, which are subject to TDS under Section 194J, then GST will be applicable.

Prashant

Prashant (Querist)
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11 June 2020 Hi,

Do we have to pay GST on Directors Remuneration who is full time director.
& if so, then wef ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 June 2020 No. Please refer Schedule III of GST Act.

CA Sindhu KJ

CA Sindhu KJ (Expert)
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11 June 2020 If remuneration paid is in form salary it falls under Sch III & GST is not required. However if it is paid as professional fees (Liable for TDS u/s 194J), GST is applicable. Refer : https://cbic-gst.gov.in/pdf/Circular-GIC-Approval-Director-Renumeration.pdf

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