Page 33 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] NEWS DESK J53
Giving relief on the filing of GST returns, the Finance Minister had said
businesses having aggregate annual turnover less than ` 5 crore can file GSTR-3B
for March, April and May by the last week of June without paying any interest,
late fee, and penalty.
Businesses having turnover more than ` 5 crore will have to pay 9% in-
terest for late filing of returns instead of 18%, according to the notifications.
M.S. Mani, a partner at consulting firm Deloitte India, said, “The exten-
sion of timelines for filing GST returns for the month of April and May to the end
of June, in case of larger businesses, does not automatically translate to a delay in
payment of GST. The delay permitted for payment of GST is only for a period of
15 days after the due date, subsequent to which interest at 9% per annum would
need to be paid. It is also relevant to note that the interest rate would go up to
18% from the original due date if the payment is made after June 24. The une-
quivocal relaxation of interest on delayed payments of GST is only for smaller
businesses having turnover of less than ` 5 crore.”
Every taxpayer registered with GST regime files monthly returns to pro-
vide a consolidated summary of inward and outward supplies in terms of val-
ues.
[Source : Hindustan Times, New Delhi, dated 10-4-2020]

Remuneration paid to directors to attract GST : AAR
Companies will have to pay GST on the remuneration they dole out to
directors, the Authority for Advance Ruling (AAR) has said.
In an application filed before the Rajasthan Bench of the AAR, Clay Craft
India Pvt. Ltd. had sought clarification on whether salaries paid to directors
would attract Goods and Services Tax.
The company said its directors are working as employees for which they
are being compensated by way of a regular salary and other allowances.
“The company is deducting TDS on their salary and PF laws are also ap-
plicable to their service. Therefore, in all practical purposes these directors are
the employees of the company and are working as such besides being directors
of the company,” it said.
In its ruling, the AAR said, “The consideration paid to the directors by
the applicant-company will attract GST under reverse charge mechanism...”
The AAR, while analysing the case, said that director is the supplier of
services and the applicant, the company, is the recipient of the services.
It said that the Central Tax (Rate) notification clearly states that services
supplied by a director of a company will be considered as supply and hence di-
rectors cannot be called an employee.
“So it is very clear that the services rendered by the director to the com-
pany for which consideration is paid to them in any head is liable to pay GST
under RCM (Reverse Charge Mechanism),” the AAR order said.
[Source : Assam Tribune, Guwahati, dated 8-4-2020]

GST LAW TIMES  16th April 2020  153