GST implication for salary reimbursement

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the Goods and Services Tax (GST) implications when a company reimburses salary costs to a sister concern, who also acts as a subcontractor. The consensus is to issue a tax invoice for the reimbursement, including GST. This invoice should be reported in GSTR-1 and GSTR-3B, similar to any other business transaction. The appropriate SAC code for 'Other business support services' (99859) is also recommended.

Kartik

Kartik (Querist)
Follow

18 September 2020 We need to raise debit note to one of our sister concern towards salary reimbursement along with GST. The same sister concern are our sub contractor.

Kindly guide whether we should issue debit note or tax invoice for the same and how it can be shown under GSTR 3B and GSTR1.

Or they need to raise credit note???
Please Guide.