We are providing housekeeping services to one of the government establishments. (Referred to as a client here). The Client is telling us to raise the invoice without levying GST as reimbursement of expense for conveyance incurred by housekeeping employees. Kindly note the following points first:
- All the employees are on our payroll.
- The conveyance expenses incurred by employees was as per client direction and for their business purpose.
- Neither ticket nor any kind of third-party document available.
- The duly signed document by the client made available with the following column only
Sr no. | Name of Employee | Date | Amount | - No Management fees to be charged. Invoice of Rs.100 to be raised for Rs. 100 spent by employees.
- We have to pay employees first then only we can raise an invoice.
Hence, our query is, can such expenses be categorized as reimbursement? Is non-charging of gst on raising invoice amounts to a violation of GST law?
Our personal opinion is GST has to be charged on this. your views are appreciated.
CAclubindia
