Wednesday, December 17, 2025 | 03:58 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Executive director is employee, not liable to pay GST: Karnataka AAR

The ruling runs contra to those of other state AARs, which have held all directors are liable to pay GST

GST, TAX
premium

The authority delivered this ruling when a petitioner with multiple income sources sought to know which heads attract GST and which don't.

Indivjal Dhasmana New Delhi
While you will not be liable to pay goods and services tax as an executive director of a company, your income will suffer GST through the reverse charge mechanism (RCM) if you at a non-executive director. This was the verdict delivered by the Karnataka authority for advance rulings (AAR). The order has stirred a controversy as other state AARs have held all directors are liable to pay GST.

The authority delivered this ruling when a petitioner with multiple income sources sought to know which heads attract GST and which don't. 

The AAR's ruling is based on the fact that executive