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applicability of GST on reimbursements

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This query is : Resolved

Vinay sawant (Querist)
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01 November 2017 Should GST be charged on debit notes raised (for reimbursement) to one shareholder of the company for the expenses (electricity,office cleaning charges etc.) incurred wholly by another shareholder ? Assuming both the shareholders are directors of the company ?

Udaya Chandran

Udaya Chandran (Expert)
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01 November 2017 Usually, GST is not applicable on reimbursements to employees and to other suppliers if it is shown separately provided some conditions are satisfied.

CA_Suhani

CA_Suhani (Expert)
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02 November 2017 The bills should be in the name of the company to claim reimbursement. In such cases, no GST between Company and director.
However, if the bills are not in the name of the company, but are rather in the director's name, then considering that there is no employer employee relationship between a director and the company, the reimbursement shall be subject to GST.

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