ELP Podcast Series- GST on Employee Stock Options (ESOPs)

Oct 9, 2023

Amongst start-ups as well as other companies, the popularity of ESOPs as a mode of employee compensation has only been growing. Such transactions, when plainly seen, are mere issuance of share capital. However, the GST authorities have recently started scrutinizing potential GST applicability on the same where employees are granted shares of their employer’s listed group company as ESOPs.

In this episode of ELP Podcast Series, Harsh Shah (Partner) and Ruchita Shah (Associate Partner) discuss the mechanics of typical ESOP transactions and analyze the same from a GST perspective, including the potential for and against arguments on taxability and safeguards that may be considered by the industry.