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ESOPs exempt from GST, barring where foreign companies charge additional amount

ESOPs exempt from GST, barring where foreign companies charge additional amount

The Central Board of Indirect Taxes and Customs (CBIC) clarified that multinational companies offering Employee Stock Purchase Plans (ESPPs), Employee Stock Option Plans (ESOPs), or Restricted Stock Units (RSUs) without additional charges will not attract GST. This decision benefits tech giants like Google, Microsoft, Oracle, and Walmart, alleviating tax litigation concerns

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