The CBIC has clarified that only payments made to non-employee Directors of a company will attract GST on the reverse charge basis.
Salary paid to full time employee directors will be subject to TDS u/s 192 of the Income Tax Act, and there shall be no requirement of payment of GST under reverse charge.
However, the part of employee director’s remuneration which is not ‘salary’ and is subject to TDS under Section 194J of the Income Tax Act as fees for professional or technical services will attract GST under reverse charge.
