The Central Board of Indirect Taxes & Customs (CBIC) on Friday clarified that salaries are not subject to GST, and said that the department has not demanded any tax on salaries paid to chief executives or employees. It was responding to media reports.
“CBIC emphasized the GST law position which clearly states under Section 7(2) read with Schedule III of the Central Goods and Services Act, 2017 (CGST Act) that the salaried services by an employee to the employer shall be treated neither as a supply of goods nor as a supply of services,” a statement said. It added that salaries as such cannot be subject to GST, and no notice has been issued to any companies demanding GST on salaries whatsoever.
Read more at: https://www.financialexpress.com/economy/cbic-refutes-reports-it-demanded-gst-on-salaries-paid-to-ceos/1766272/