RCM Applicability in Multistate coperative societies

Reverse charge on director services: not applicable to multistate cooperative societies lacking body corporate status under GST
Whether the reverse charge mechanism applies to director remuneration paid by a multistate cooperative society depends on whether the society qualifies as a body corporate under the RCM notification; the notification adopts the Companies Act meaning of body corporate, under which cooperative societies are typically not so classified. Only services supplied by a director in his capacity as director are taxable under the RCM entry, while remuneration paid to a director who is an employee is not a taxable supply under Schedule III and therefore does not attract RCM. (AI Summary)