Applicability of GST RCM on Professional Fees paid to Wholetime Director

[Kalpesh Shah]

Respected Experts and Seniors,

My Querry :

Whole time Director of a Pvt Ltd Company taking Professional fees from the Company.

Company Deducts TDS U/s. 194J of Income Tax Act.

Wholetime Director is also Registered Under GST Act.

Kindly Suggest

1. Whether GST is applicable on RCM basis to company or Forward Charge basis ?

2. Whether director is required to be registered under GST, if his other receipts (other than Above Professional Fees) is below Rs. 20 lakhs ?

Thanking you in Advance.

AI Summary

Reverse charge mechanism not applicable to professional fees paid to whole-time director; supplier must charge GST and registration follows threshold.
Where a whole-time director renders professional services to the company, those services are taxable under the normal charging framework and reverse charge mechanism does not apply; the director as supplier must charge GST. Labeling the payment as managerial remuneration does not change the GST character. Registration is required if the director's aggregate taxable supplies, including the professional fees, exceed the statutory registration threshold, and TDS under income tax does not affect GST liability.