Gst on reimbursement of transport charges.

This query is : Resolved 

28 February 2018 Hi Experts,

Please suggest me regarding GST on reimbursement of transport charges. As the Supplier is supplying the goods & raised one invoice and reimbursement of transportation charges by another invoice for the same consignment, but supplier does not levied GST on separate transport Invoice.

Pls suggest for applicability of GST on reimbursement of Transportation charges.

Thanks & Regards,
Arvind Machhi

28 February 2018 Dear Arvind,
Reimbursement of transportation charges incurred by the supplier is in the nature of payment to pure agent (ie he receives only the actual amount incurred by him for the transportation ).
As per Rule 33 of CGST Rules 2017 such payment shall not be included in the value of supply.


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