GST ON INCENTIVE PAID TO DIRECTOR

[knr varma]

ABC COMPANY HAVING TWO DIRECTORS,ONE DIRECTOR MARKETING THEIR COMPANY(abc) PRODUCTS AND GETTING INCENTIVE YEARLY BASIS.

ABOVE CASE COMPANY HAS LIABLE TO PAY GST OR NOT ?

THANKS IN ADVANCE

AI Summary

Discussion on GST Applicability: Director Incentives as Salary Exempt from GST; TDS Under Section 192 or 194? A company inquired about the applicability of GST on incentives paid to one of its directors who also serves as the marketing head. Several participants in the discussion clarified that if the director is considered an employee, the incentive is part of the salary, maintaining an employer-employee relationship, thus exempting it from GST. There was a debate about whether TDS should be deducted under Section 192 or 194, which affects the classification of the payment. The consensus was that if classified under Section 192, it is not considered a supply of goods or services under the CGST Act, 2017.