GST On Reimbursement of Expenses claim by supplier


This query is : Resolved 

Quick Summary
This discussion clarifies whether Goods and Services Tax (GST) applies to expense reimbursements claimed by a service supplier. The consensus is that if the supplier is acting as a 'pure agent' and merely passing on expenses paid to a third party without any value addition, then GST is not applicable on these reimbursements. This avoids double taxation, as GST would have already been paid by the supplier to the third party.

29 May 2023 Dear Sir/Madam, Is GST applicable on reimbursement of expenses claimed by supplier of service when the supplier paid those expenses to third party? If yes why should recipient pay GST twice since the expenses were already charged GST by third party to the supplier when there is no value addition? Could you please clarify.. Is this not called pure agent service?

30 May 2023 Yes, this is pure agent service GST not applicable on such reimbursement.

30 May 2023 Thank you very much sir..

30 May 2023 You are welcome...
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