GST Directors

[Madhavan iyengar]

A is a director in many companies and receives directors fees he does not render any other services his total directors fees exceeds rs. 40 lacs is A required to take registration under GST

since his services as a director are covered under reverse charge and he does not render any other services he only receives director fees

AI Summary

Director Receiving Fees Exceeding Rs. 40 Lakhs Not Required to Register for GST Due to Reverse Charge Mechanism A director who receives fees exceeding Rs. 40 lakhs but provides no other services inquired about the necessity of GST registration, given that his services fall under the reverse charge mechanism (RCM). Multiple responses confirmed that registration is not required since the company receiving the director's services is responsible for GST payment under RCM. It was clarified that the director's fees, even if exceeding Rs. 50 lakhs, do not necessitate registration as they are not included in the aggregate turnover for GST registration purposes. The discussion also addressed the distinction between ordinary directors and employees.