RCM on Director Sitting Fees, Goods and Services Tax - GST

[PrateekKumar Khemka]

One of my client who is a Govt Company with no revenue holding GSTIN as deductor as on date is paying Director Sitting Fees to Independent Director wherein TDS is Deducted u/s 194J.

My query is in regard to applicability of RCM on such Director Sitting fees paid by the Company?If your answer to above query is yes, shall the company obtain GST Registration just for the purpose of discharging GST Liability?

Thanks in Advance

Posts / Replies

[KASTURI SETHI]

Answer to both queries is yes.

Board's FAQ dated 7.8.17

(16) Whether payment of sitting fees to directors covered in the provisions of reverse charge under director services.

Reply : Yes, it is covered. Please see S. No. 6 of Table to Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017.

[Shilpi Jain]

Can I know the reason why the government company is not having any regular registration?

[Ganeshan Kalyani]

Yes, GST is payable by the company on director sitting fees. And for paying GST, the company has to take GST registration number.