Goods and Services Tax

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This discussion clarifies whether a visiting faculty member, Mr A, needs to pay Goods and Services Tax (GST) on the honorarium received from a GST-exempt college. The applicability of GST hinges on whether Mr A is considered an employee. If a formal employee-employer relationship exists as per the contract, GST is not applicable. However, if this relationship cannot be established, particularly given the payment is described as an honorarium, GST is likely to be applicable.

Mousumi Baneerjee

Mousumi Baneerjee (Querist)

04 December 2021 Mr A teaching in a college as a visiting/guest faculty on a monthly honorarium based on a fixed amount per hour taught and registered for GST on voluntarily basis for his own practice as a professional.
The college is a University affiliated college and exempted from Goods and Services Tax.
Whether Mr A have to pay GST on the honorarium he gets from the said college. And if not , what is the clarification?
Someone can shed a light on the above

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 December 2021 GST not payable as he will be considered as employee(faculty).

CA Altamush Zafar

CA Altamush Zafar (Expert)

04 December 2021 If Mr A is an employee as per the contract between Mr A and university then GST not payable otherwise if it cannot be established that Mr A is an employee then GST is applicable. Since you have mentioned that it is on honorarium it doesn't seem that there is employee-employer relationship. GST will be applicable.

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