FAQs on GST liability on Director of Company
FAQs on GST liability on Director of Company By ADVVISHALJOSHI Introduction Generally, under GST provisions, the liability to pay tax rests on the supplier. However, in certain cases, the liability to pay GST to the government falls on the recipient. This is known as the reverse charge mechanism which is covered under Notification No. 13/2017-Central Tax (Rate). According to the said notification, services supplied by a director of a company or a body corporate to the said company or the body corporate are covered under RCM provisions (liability to pay tax falls on the company or body corporate) Schedule III to CGST Act2017 covers activities or transactions which shall be treated neither as a Supply of Goods nor a Supply of Services. Services by an employee to the employer in the course of or in relation to his employment are covered under Schedule III (not taxable under GST). AAR Rulings pertaining to services provided by directors: – 1. AAR of Karnataka in case of M/s. Alcon Consul