Articles 3rd Jul 2024

No GST on ESOP reimbursements – An incentive from the Government to employers

Authors

Harsh Shah Partner | Mumbai
Ruchita Shah Associate Partner | Ahmedabad

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Pursuant to recommendations of the 53rd GST Council Meeting, the CBIC has issued Circular No. 213/07/2024-GST dated June 26, 2024 clarifying that the transactions of issuance of shares by the foreign holding company to employees of domestic subsidiary company under ESOP schemes and corresponding reimbursement of cost of shares by the domestic subsidiary company do not constitute supply of goods or services and do not attract GST.

In this Article titled “No GST on ESOP reimbursements – An incentive from the Government to employers” published by BW Legal World, Our Partner Harsh Shah and Associate Partner Ruchita Shah are delving into the nature of ESOP transactions, the controversy surrounding the same under the GST regime, impact of this clarification and way forward for the industry.

Read the article here