Clarification in respect of levy of GST on Director's remuneration - Reg.

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.... is leviable on Director's remuneration paid by companies to their directors. Doubts have been raised as to whether the remuneration paid by companies to their directors falls under the ambit of entry in Schedule III of the Bihar Goods and Services Tax Act. 2017 (hereinafter referred to as the BGST Act) i.e. "services by an employee to the employer in the course of or in relation to his employment" or whether the same are liable to be taxed in terms of notification No. 13/2017 -State Tax (Rate) dated 29.06.2017 (entry no.6). 2. The issue of remuneration to directors has been examined under following two different categories: (i) leviability of GST on remuneration paid by companies to the independent directors defined in term....

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....aid company. 4.2 Therefore, in respect of such directors who are not the employees of the said company, the services provided by them to the Company, in lieu of remuneration as the consideration for the said services, are clearly outside the scope of Schedule III of the BGST Act and are therefore taxable. In terms of entry at SI. No. 6 of the Table annexed to notification No. 13/2017 - State Tax (Rate) dated 29.06.2017, the recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis. 4.3 Accordingly, it is hereby clarified that the remuneration paid to such independent directors, or those directors, by whatever name called, who are not employees of the said company, is taxab....