A company pays sitting fees to an independent director (who is not an employee of the company). Under GST, who is liable to pay the tax on these services?
Need a hint?
Look at Notification 13/2017’s reverse-charge list — and ask whether an independent director can be an "employee".
Entry 6 of Notification No. 13/2017-Central Tax (Rate) places services supplied by a director to the company under reverse charge, so the company, as recipient, pays the GST. CBIC Circular No. 140/10/2020-GST draws the line: remuneration to an independent director is not salary to an employee (Schedule III does not apply), so it is a taxable supply on which the company discharges GST under RCM. The director’s own registration threshold is irrelevant to the recipient’s reverse-charge liability.