This article examines the Madras High Court’s decision in the case of Global Calcium Pvt Ltd regarding GST demands on performance-linked incentives (PLI) paid to directors. The Court directed the assessing officer to reevaluate the issue, highlighting the necessity of considering Circular No. 140/10/2020-GST dated June 10, 2020. The ruling underscores the importance of distinguishing between remuneration paid as ‘salary’ to employees and payments for services rendered under a contract, which may have different GST implications. This case is significant for its implications on how performance incentives are treated under GST law.