Satya Yadav a person who is not registered under GST, appointed as an independent director in accordance with the provisions of the Companies Act, 2013, of Dhanlaxmi Industries Pvt. Ltd. He has received ₹ 2,25,000 as sit

The part of director's remuneration which is declared as salaries in the books of a company and subject to TDS under section 192 of the Income-tax Act, 1961, is not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment is outside the scope of supply in terms of Schedule III of the CGST Act, 2017. Further, the part of employee director's remuneration which is declared separately other than salaries in the company's accounts and subject to TDS under section 194J of the Income-tax Act, 1961 as fees for professional or technical services or siting fees are treated as consideration for providing services which are outside the scope of Schedule III and is therefore, taxable. The recipient of the said services i.e., the company, is liable to pay the applicable GST on it under reverse charge basis. In lieu of the above provisions, ₹ 2,25,000 as sitting fees paid to Satya Yadav, an independent director is taxable under reverse charge basis. Therefore, recipient of the said services i.e., Dhanlaxmi Industries Pvt. Ltd., is liable to pay the GST @ 18% on it under RCM. Further ₹ 16,00,000 as Salary on which TDS is deducted u/s 192 of the Income-tax Act, 1961, is not taxable as per Schedule III CGST Act 2017.