Arun Bramha asked 5 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
ConsultEase Administrator answered 5 years ago
Remuneration to directors will not attract GST. Just an AAR cant change this ettled principal.
Sunil Harchari answered 5 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.
