https://www.taxtmi.com/circulars?id=69514 Clarification is issued on the GST treatment of ESOP, ESPP and RSU arrangements where a foreign holding company directly allocates shares or securities to employees of an Indian subsidiary as part of the compensation package. The circular explains that the transfer of shares or securities is not a supply of goods or services under GST, and that employee participation under the employment contract is outside GST under Schedule III. Cost-to-cost reimbursement by the subsidiary is not treated as import of services, but any additional fee, markup or commission charged by the foreign holding company is taxable as a facilitation or arranging service on reverse charge basis. en-us Wed, 03 Jul 2024 00:00:00 +0530 Mon, 23 Mar 2026 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=69514 Clarification is issued on the GST treatment of ESOP, ESPP and RSU arrangements where a foreign holding company directly allocates shares or securities to employees of an Indian subsidiary as part of the compensation package. The circular explains that the transfer of shares or securities is not a supply of goods or services under GST, and that employee participation under the employment contract is outside GST under Schedule III. Cost-to-cost reimbursement by the subsidiary is not treated as import of services, but any additional fee, markup or commission charged by the foreign holding company is taxable as a facilitation or arranging service on reverse charge basis. Circulars GST - States Wed, 03 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=69514