In a recent advance ruling in the matter of M/s Craft India Private Limited, the Authority of Advance Ruling, Rajasthan (“AAR”) [Advance Ruling No. RAJ/ AAR/ 2019-20/ 33] held that the Good and Service Tax [“GST”] shall be chargeable under the reverse charge mechanism, on the consideration paid or payable to the directors. This ruling of the AAR has created much ambiguity within the corporates and the directors of the companies, as to whether the consideration paid or payable to the directors would attract GST or not.
Please click here for understanding the levy of GST on the consideration paid or payable to the directors for their services.
Source: Contribution by Srinivas Kotni, Managing Partner, Lexport | [email protected] | +91-9811282863 | www.lexport.in
Latest Posts in "India"
- Consumer Goods Companies Cut Prices as GST 2.0 Launches Monday
- GST Rate Changes Effective September 22, 2025: Key FAQs and Updates
- GST Rate Cut to 5% for Budget Hotels Under ₹7,500 Restricts Input Tax Credit
- Bombay HC Rules Freight Charges Reimbursed by Wholesalers Not Part of Sale Price
- GST Council announces major rate restructuring and exemptions
