Clarification By CBIC - GST Applicability on Director Remuneration

In the Past there was so many ambiguity related with Applicability of GST on Director remuneration. An Order of Rajasthan Authority for Advance Ruling (AAR) in case of M/s CLAY CRAFT INDIA PVT. LTD. (JAIPUR)(Order No. RAJ/AAR/2019-20/33 date 20th Feb,20) held that remuneration payable by company to its directors is taxable and attract GST under reverse charge. Similar kind of case is there of M/s Alcon Consulting Engineering (I) Pvt Ltd (Karnataka), Order No.KAR ADRG 83/2019 DATE 25-09.2019 and Karnataka AAR held that GST under RCM to be paid on remuneration paid to directors. CBIC now clarified via circular no 140/10/2020 How GST will be levied and when it is to be levied, Here We are tried best to curtail this issues and provide crux so this issues will be memorized in finger . You can reach out to us : Telephone No: 94620 79898 Mail ID : puneetasija80@gmail.com

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