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All QuestionsCategory: GST ConsultancyRemuneration to director attracts GST under RCM
Profile photo of Arun BramhaArun Bramha asked 4 years ago

Remuneration to director attracts GST under RCM

Hi, Can you please tell me  <Remuneration to director attracts GST under RCM>..
 
Is it applicable to LLP / LLP  directors ( Designated partners.) ?
 
Hi- LLP  setup in January 2017.   It has 3 directors registered in MCA . There is no employee in LLP.  
All 3 directors  works for LLP. They don’t get salary.
At year end  they get only  share of LLP profits.
They do not pay any GST on it .  LLP also does  not pay any GST  on this payment.

=>> Recently there is a Topic under discussion :  

<<<Remuneration to director attracts GST under RCM>>>

Can you please  explain.. What I should do now …

Thank you
 
 
Ref:  https://www.consultease.com/gst-compliances-in-india/rcm-services-director-gst/
 
Thank you

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2 Answers
Profile photo of ConsultEase AdministratorConsultEase Administrator answered 4 years ago

Remuneration to directors will not attract GST. Just an AAR cant change this ettled principal.

Profile photo of Sunil HarchariSunil Harchari answered 4 years ago

As per section 103(1)(a), (b)and103(2) of CGST Act, 2017, AAR shall be binding only on the applicant,w concerned officer or jurisdiction officer had sought it in respect of any mattered referred to section 97(2) and unless the law, facts or circumstances supporting the original AAR have changed. 


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