Taxability of employee stock awards: cost-to-cost reimbursements are not subject to GST; facilitation fees are taxable on reverse charge. Transfer of securities by a foreign holding company to employees of an Indian subsidiary as ESOP/ESPP/RSU, with the domestic subsidiary reimbursing purely the market cost on a cost-to-cost basis, is not a supply of goods or services and does not amount to import of services subject to GST; however, any additional fee, markup, or commission charged by the foreign holding company constitutes consideration for a taxable facilitation service, attracting GST payable by the domestic subsidiary on reverse charge.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxability of employee stock awards: cost-to-cost reimbursements are not subject to GST; facilitation fees are taxable on reverse charge.
Transfer of securities by a foreign holding company to employees of an Indian subsidiary as ESOP/ESPP/RSU, with the domestic subsidiary reimbursing purely the market cost on a cost-to-cost basis, is not a supply of goods or services and does not amount to import of services subject to GST; however, any additional fee, markup, or commission charged by the foreign holding company constitutes consideration for a taxable facilitation service, attracting GST payable by the domestic subsidiary on reverse charge.
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