2 June 20265 min read

GST on Director Remuneration: When is RCM Applicable?

Understand the difference between executive director salaries (salaried) and independent director fees (subject to RCM).

GSTRCMCorporate

Director Remuneration Rules

Remuneration paid to independent directors is subject to 18% GST under the Reverse Charge Mechanism. However, regular salaries paid to whole-time or executive directors (which trigger PF and TDS under Section 192) are exempt from GST as employee services.