REGARDING REMUNERATION PAID TO DIRECTORS

As per the GST Act, services provided by an employee to the employer in accordance with the employment agreement are neither considered as supply of goods nor supply of services.

Hence, GST is not leviable in such cases. However, if the services are not classifiable as employer-employee relationship, then GST is levied on such remuneration. In that case, company (service recipient) will be liable to deposit the GST dues on reverse charge basis with the government as per Notification No. 13/2017