TaxTMI 
TaxTMI 
WHETHER SALARY/REMUNERATION PAID TO THE DIRECTORS OF THE COMPANY IN THE NORMAL CIRCUMSTANCES IS LIABLE TO REVERSE CHARGE.
EVERY PRIVATE COMPANY IN THE ORDINARY COURSE OF BUSINESS, GIVES SALARY TO ITS DIRECTORS.
SERVICES PROVIDED BY A DIRECTOR OF A COMAPANY
07 May 2019 
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Employer-employee relationship determines GST liability on director remuneration; where absent, service-tax precedents may indicate taxable services.
GST liability on director remuneration depends on whether a employer-employee relationship exists; mere monthly salary is insufficient to establish that relationship. Evidence such as an appointment letter containing hiring-and-firing authority and other employment parameters is material. Absent an employment relationship, remuneration may be treated as a taxable service, and service-tax precedents-both pro-revenue and pro-assessee-are relied upon in assessing GST treatment. (AI Summary)
GST liability on director remuneration depends on whether a employer-employee relationship exists; mere monthly salary is insufficient to establish that relationship. Evidence such as an appointment letter containing hiring-and-firing authority and other employment parameters is material. Absent an employment relationship, remuneration may be treated as a taxable service, and service-tax precedents-both pro-revenue and pro-assessee-are relied upon in assessing GST treatment. (AI Summary)