Page 54 - GSTL_18th June 2020_Vol 37_Part 3

C10 GST LAW TIMES [ Vol. 37
3.2 In this context it is noteworthy that before the issuance of Circular
No. 135/05/2020-GST, dated 31st March, 2020, refund was being granted even in
respect of credit availed on the strength of missing invoices (not reflected in
FORM GSTR-2A) which were uploaded by the applicant along with the refund
application on the common portal. However, vide Circular No. 135/05/2020-
GST, dated the 31st March, 2020, the refund related to these missing invoices has
been restricted. Now, the refund of accumulated ITC shall be restricted to the
ITC available on those invoices, the details of which are uploaded by the supplier
in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
4. The aforesaid circular does not in any way impact the refund of ITC
availed on the invoices/documents relating to imports, ISD invoices and the
inward supplies liable to Reverse Charge (RCM supplies) etc. It is hereby
clarified that the treatment of refund of such ITC relating to imports, ISD
invoices and the inward supplies liable to Reverse Charge (RCM supplies) will
continue to be same as it was before the issuance of Circular No. 135/05/2020-
GST, dated 31st March, 2020.
5. It is requested that suitable trade notices may be issued to publicize
the contents of this circular.
6. Difficulty, if any, in implementation of this Circular may please be
brought to the notice of the Board. Hindi version would follow.
[C.B.I. & C. Circular No. 139/09/2020-GST, dated 10-6-2020]

Director’s Remuneration — Levy of GST — Clarification

Subject : Clarification in respect of levy of GST on Director’s remuneration -
Regarding.
Various references have been received from trade and industry seeking
clarification whether the GST is leviable on Director’s remuneration paid by
companies to their directors. Doubts have been raised as to whether the
remuneration paid by companies to their directors falls under the ambit of entry
in Schedule III of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the CGST Act) i.e. “services by an employee to the employer in the
course of or in relation to his employment” or whether the same are liable to be taxed
in terms of notification No. 13/2017-Central Tax (Rate), dated 28-6-2017 (entry
no. 6).
2. The issue of remuneration to directors has been examined under
following two different categories :
(i) leviability of GST on remuneration paid by companies to the
independent directors defined in terms of section 149(6) of the
Companies Act, 2013 or those directors who are not the employees of
the said company; and
(ii) leviability of GST on remuneration paid by companies to the whole-
time directors including managing director who are employees of the
said company.
3. In order to ensure uniformity in the implementation of the
provisions of the law across the field formations, the Board, in exercise of its
powers conferred under section 168(1) of the CGST Act hereby clarifies the issue
as below :
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