Gst applicable or not

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Anand Mahadik (Querist)

14 February 2018 Sir,

we purchase machinery from vendor, but machine not working properly therefore we have to send back machine to vendor for repair

for sending machine we have to do packing from third party i.e. labour work only that charges recoverable from vendor through Debit note

GST applicable or not

Pure Agent applicable

kindly advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 February 2018 GST not applicable such expenses will fall under pure agent.

Arpit

Arpit (Expert)

14 February 2018 Anand - you need to charge GST for taking this reimbursement of expenses.

As per Rule 33 of CGST Rules, defination of pure agent in your case is not satisfied. As per Rule 33, pure agent receives only the actual amount in addition to the amount received for supply he provides on his own account.

Since, in your case you are not providing any additional supply, the conditions of pure agent is not met and hence you need to charge GST

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