News & Media 25th Jun 2020

Unraveling the Dichotomy of GST on Director’s Remuneration

Authors

Rohit Jain Deputy Managing Partner | Mumbai

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The objective of Goods and Service Tax reform was to guide the nation towards a simpler tax regime with new improvements. Advance Ruling Authorities (AARs) were introduced to offer tax-payers a forum for achieving timely certainty on any contentious issues. Ironically, multiple AAR and their rulings have added to the confusion on provisions of GST, the latest victim of the same being Director’s remuneration. Rohit Jain, Partner, Economic Laws Practice (ELP), in his article for Taxsutra, highlights how recent advance rulings have unsettled the position of GST on services by Executive Directors. In this article the author perceives the scope & contours of GST in any commercial transactions and sheds light on multiple advance rulings by AARs to understand whether the services by Directors are taxable under GST or not.
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