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GST on GST

29 March 2018

One of our supplier doing advertising service & he is doing arrangements like hire car, air tickets etc. On behalf of companies he paying to their suppliers with GST. Same he raising
bill to company with Total bill value +. Gst.

Is it correct, if yes than provide relevant notification

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5 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 29 March 2018

If he is acting as a pure agent then no gst is leviable on reimbursement... Plz refer section 15...gst is leviable only on his advertising fee

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Murugaperumal Jayaraman (70 Points)
Replied 29 March 2018

No. He is not pure agent.. Only collected his actual spend

Divakar (Student CA Final ) (11857 Points)
Replied 29 March 2018

Pure Agent means a person who: (a) enters into a contractual agreement with the recipient of supply to act on their behalf and incur expenditure or costs in the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services (or both) procured on behalf of or provided to the recipient of supply; (c) does not use the goods or services so procured for his own interest; and (d) receives only the actual amount incurred to procure such goods or services.

Divakar (Student CA Final ) (11857 Points)
Replied 29 March 2018

If all that expenses is on ur account and bill is in ur name... Just payment made by that person and later u reimburse the same... Then no gst on it... Refer rule 33 of cgst act... In future make bill in ur own name