Remuneration to directors

This discussion delves into the applicability of GST, specifically Reverse Charge Mechanism (RCM), on remuneration paid to directors. While some recent Advance Rulings suggest RCM applies to all services rendered by a director, many tax experts argue this contradicts GST provisions. Specifically, salary paid to a director treated as an employee is generally considered 'no supply' and outside GST purview, aligning with Schedule III of the CGST Act. The debate continues on whether RCM applies only to services provided in the capacity of a director or to all remuneration. Further clarification from the GST department is anticipated.