GST on director remuneration: non employee directors' fees taxable under reverse charge; employee salaries treated under Schedule III.
CBIC Circular No.140/10/2020 distinguishes non employee directors and employee directors for GST. Remuneration to non employee or independent directors is outside Schedule III and taxable under the Reverse Charge Mechanism under entry 6 of Notification No.13/2017, with the company liable. For employee or whole time directors, amounts treated as salary and subject to salary TDS fall under Schedule III and are not taxable under GST; amounts separately treated as professional/technical fees and subjected to professional fees TDS are outside Schedule III and taxable under entry 6, payable by the company under RCM. (AI Summary)

Input tax credit on demonstration vehicles available where capitalized and used in furtherance of vehicle-supply business, allowing set-off.
Demonstration motor vehicles that are capitalized in the dealer's books and used to provide trial runs qualify as capital goods used in the furtherance of business and therefore entitle the dealer to input tax credit under Section 16(1); the exclusion in Section 17(5)(a) does not bar credit where such vehicles are subsequently sold as a taxable supply, so ITC on demo vehicles can be availed and set off against output tax payable. (AI Summary)