Clearing forwarding reimbursement party account

This query is : Resolved

Quick Summary

Discussion on accounting treatment of reimbursement expenses billed by a clearing & forwarding agent. Experts clarified that GST law does not require separate ledger entries for each reimbursement party, provided invoice-wise ITC reconciliation and proper records are maintained.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

05 January 2026 Import clearing & forwarding agent raise his two bills
, 1) Purely reimbursement expenses bills
2) Only his Agency charges.
On first No. There are various bills of reimbursement.
We accounted following.
Dr. clearing & forwarding expenses, Dr. Gst input & credit to clearing forwarding agent.
In reimbursement bills there are numbers of parties.
It is not possible to make each entry separately and again nullify the same party account. Because we make payment to C& F agent not reimbursement party.
While taking gst input we maintain reimbursement party data in excel, for taking reference to verify gst input according to gstr 2b

My question,- According to gst rules / Act is it mandatory to incorporate in books of accounts each party details for input . Is there any contravention.
If yes under which section / rule

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

09 January 2026 It is NOT mandatory to incorporate each reimbursement party in books.

There is no contravention under GST Act or Rules.

ITC is supplier-wise, not ledger-wise.

Rule 33 governs reimbursement, not accounting structure.

Your current accounting method is legally acceptable.

GST law requires invoice-wise ITC reconciliation, not party-wise ledger posting.
Consolidated accounting with proper invoice tracking is fully compliant.

Rajkumar Gutti

Rajkumar Gutti (Querist)
Follow

10 January 2026 Ok, sir धन्यवाद 🙏🙏🙏🙏

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now