CBIC Circular on GST Taxability of ESOP/ESPP/RSU by Indian Companies

CBIC Circular on GST Taxability of ESOP/ESPP/RSU by Indian Companies

The CBIC has issued Circular No. 213/07/2024-GST dated June 26, 2024, addressing the taxability of Employee Stock Option Plans (ESOPs), Employee Stock Purchase Plans (ESPPs), and Restricted Stock Units (RSUs) provided by Indian companies through their overseas holding companies to their employees.

This clarification responds to queries from trade and field formations regarding the GST implications when Indian subsidiaries offer their employees the opportunity to receive securities or shares from their foreign holding companies as part of their employment compensation package. Here’s a breakdown of the key points clarified by the CBIC:

For further details, please refer to Circular No. 213/07/2024-GST dated June 26, 2024, accessible here

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