Page 28 - GSTL_18th June 2020_Vol 37_Part 3

J62 GST LAW TIMES [ Vol. 37
E-way Bill generated on or before 24-3-2020 and whose validity has
expired on or after 20-3-2020 - Validity period extended till 30-6-2020. — The
Government has, w.e.f. 31-5-2020, amended Notification No. 35/2020-C.T., dated
3-4-2020 to provide that where an E-way Bill has been generated on or before 24-
3-2020 and whose validity has expired on or after 20-3-2020, the validity period
of such E-way Bill shall be deemed to have been extended till 30-6-2020. — Notifi-
cation No. 47/2020-C.T., dated 9-6-2020. (See page S6)

GST Departmental Clarifications

Refund related issues - Clarifications. — Considering the representa-
tions seeking clarification on the issue relating to refund of accumulated ITC, the
C.B.I. & C. has clarified that refund of accumulated ITC is respect of ITC availed
on Imports, ISD invoices, RCM etc. should not be rejected on the ground that the
details of the invoices/documents are not reflected in FORM GSTR-2A of the
applicant and the treatment of refund of such ITC relating to imports, ISD in-
voices and the inward supplies liable to Reverse Charge Mechanism (RCM sup-
plies) will continue to be same as it was before the issuance of Circular No.
135/05/2020-GST, dated 31-3-2020. — C.B.I. & C. Circular No. 139/09/2020-GST,
dated 10-6-2020. (See page C9)
Director’s Remuneration - Levy of GST - Clarification. — In view of the
various references received from trade and industry seeking clarification wheth-
er the GST is leviable on Director’s remuneration paid by companies to their di-
rectors, the C.B.I. & C. has clarified the issue as follows :
(i) In respect of Independent Directors who are not the employees of
the Company, the services provided by them to the Company, in
lieu of remuneration as the consideration for the said services, are
outside the scope of Schedule-III of the CGST Act and are therefore
taxable in hands of the company, on reverse charge basis, in terms
of Notification No. 13/2017-C.T. (Rate), dated 28-6-2017.
(ii) In respect of Whole-time Directors including Managing Director
who are employees of the Company, the part of remuneration
which are declared as ‘Salaries’ in the books of a company and sub-
jected to TDS under Section 192 of the IT Act, are not taxable being
consideration for services by an employee to the employer in the
course of or in relation to his employment in terms of Schedule-III
of the CGST Act, 2017.
(iii) However, the part of employee Director’s remuneration which is
declared separately other than ‘salaries’ in the Company’s accounts
and subjected to TDS under Section 194J of the IT Act as Fees for pro-
fessional or Technical Services shall be treated as consideration for
providing services which are outside the scope of Schedule-III of the
CGST Act, and is therefore, taxable in hands of the company, on re-
verse charge basis, in terms of Notification No. 13/2017-C.T. (Rate),
dated 28-6-2017. — C.B.I. & C. Circular No. 140/10/2020-GST, dated
10-6-2020. (See page C10)
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