Page 103 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] IN RE : CLAY CRAFT INDIA PVT. LTD. 589
goods or services or both shall not be considered as payment
made for such supply unless the supplier applies such deposit
as consideration for the said supply;”
1 5.7 we observe that the consideration paid to the Director for the sup-
ply of services to the Company is specifically covered under Notification No.
13/2017-Central Tax (Rate), dated 28-6-2017 which states that “on categories of
supply of services mentioned in column (2) of the Table below, supplied by a
person as specified in column (3) of the said Table, the whole of central tax levia-
ble under Section 9 of the said Central Goods and Services Tax Act, shall be paid
on reverse charge basis by the recipient of the such services as specified in col-
umn (4)”. The relevant portion of the said Notification is as under :-
Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017

Sl. Category of Supply of Supplier of Recipient of Service
No. Services Service
1 2 3 4
6 Services supplied by a A director of a The company or a body
Director of a company or company or a corporate located in the
a body corporate to the body corporate taxable territory
said company or the
body corporate

5.8 We further observe that consideration paid to the Directors is
against the supply of services provided by them to the applicant company and
are not covered under clause (1) of the Schedule III to the CGST Act, 2017 as the
Directors are not the employee of the Company. In the instant case Director is the
supplier of services and the applicant company is the recipient of the services. So
it is very clear that the services rendered by the Director to the company for
which consideration is paid to them in any head is liable to pay GST under RCM.
5.9 We also observe that the applicant company is located in the taxable
territory and the Director’s consideration is paid for the supply of services by the
Directors to the applicant company and hence the same is liable to GST by way
of reverse charge basis as provided under Notification No. 13/2017-Central Tax
(Rate), dated 28-6-2017 issued under Section 9(3) of the Central Goods and Ser-
vices Tax Act, 2017.
5.10 Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017 has
given the distinct identity to the services provided by the Director and specifical-
ly included in the category of service on which GST will be payable under RCM.
The case laws citied by the applicant are not relevant in the present case inas-
much as that the liability to pay GST under RCM in this case is required to be
decided on the basis of the existing provisions of CGST law as being discussed
briefly in this order.
6. In view of the foregoing, we rule as follows :-
RULING
(a) The consideration paid to the Directors by the applicant company
will attract GST under reverse charge mechanism as it is covered
under Entry No. 6 of Notification No. 13/2017-Central Tax (Rate),
dated 28-6-2017 issued under Section 9(3) of the CGST Act, 2017.
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1 Paragraph number as per official text.
GST LAW TIMES  30th April 2020  103