GST on Directors' Pay: Employee Salaries Exempt, Professional Fees Taxable via Reverse Charge (Notification No. 13/2017.

The circular clarifies the applicability of GST on directors' remuneration. For independent directors or those not employed by the company, their remuneration is taxable under the reverse charge mechanism as per notification No. 13/2017. For directors who are employees, remuneration classified as "salaries" and subjected to TDS under Section 192 of the Income Tax Act is not taxable under GST. However, remuneration classified as professional fees and subjected to TDS under Section 194J is taxable, with the company liable for GST on a reverse charge basis.

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