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Gst on reimbursement

192 views 3 replies

Vinay Jaindani

188 Points Joined November 2017

Dear Sir,

One of client is providing consulting services to a company for which he charges gst however the company also provide him reimburse the charges related to the services like electricity bills...now the company is demanding GST invoice for all of the reimbursement expenses is it ok to issue a GST invoice for recovering the reimbursement expenses also how to treat it GST Returns.

Replies (3)

pradeep goyal

Senior Partner

7561 Points Joined May 2017

read rule 33 of CGST Rules 2017

Uttam

employee

814 Points Joined August 2011

you can satisfy the conditions of pure agent and then issue invoices.

sujith kumar dasa

banglore

1496 Points Joined June 2012

From above it seems you are availing consulting services from a companh with whom you have a contract to even reimburse the charges like electricity charges etc.

As per provisions of GST, reimbursement in nature of Pure agent is only not laible for tax otherwise it would be taxable at rate applicable on service provided.

In your case, the reimbursement doesnt fall under pure agent and hence GST is applicable.

However you xan avail input credit of same.