Generally receipt of salary by partner is towards his share of profit from the partnership firm. Share of profit is nothing but transaction in money and thus GST shall not apply. Also in case of working partners, then aslo it will be non supply due to employee services to employer are outside scope of supply as per Schedule III of the CGST Act. Further it not being a supply such salary will also not be included in the aggregate turnover of such partner for purpose of determining its registration. Recently Karnataka AAR has also ruled the same in the case of M/s Amit Kumar Agrawal in Advance Ruling No. KAR ADRG 30/2020 vide order dated 04.05.2020.
Frah Saeed Changed status to publish May 10, 2020