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GST on director remuneration — latest position?

Asked by Expert CA · 1 Aug 2026

Private limited company paying salary to whole-time director who is also an employee. Is GST applicable under RCM? What about sitting fees for independent directors?

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Accepted answer

Where director remuneration is declared as salary in the books and TDS u/s 192 is deducted (employer-employee), GST is generally not applicable. Sitting fees / commission not in the nature of salary may attract GST under reverse charge as notified. Document the employment contract and payroll treatment clearly.

Expert CA · 2 Aug 2026

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