CBIC settles controversy over imposition of GST on directors' income

These remunerations would be treated as fees for professional or technical services

The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday clarified that remuneration to directors — whatever name they are referred to as (independent directors or whole time directors) — would attract goods and services tax (GST) in case they are not employees of the concerned companies. GST will be imposed on them on a reverse charge mechanism (RCM). This way, CBIC has settled an ongoing controversy related to the matter due to conflicting rulings by the authority for advance rulings (AARs).
 
Normally, a person or entity providing services pays tax to the exchequer, and recovers it from