Reimbursement of expense- GST applicable or not

This query is : Resolved

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When seeking reimbursement for expenses paid on behalf of a client, the applicable tax treatment depends on the nature of the supply. If the reimbursement is part of a taxable supply and you acted as a pure agent, you should issue a Tax Invoice, clearly itemising the reimbursed amount. However, if the reimbursement relates to exempt or non-taxable supplies, a Bill of Supply is the appropriate document. A Debit Note should not be used for reimbursements.

Pooja Mehta

Pooja Mehta (Querist)
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11 November 2025 Dear Members,
I have paid expense for my client and now availing the same as reimbursement in bill
What should i raise tax invoice/bill of supply/ debit note

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 November 2025 Raise a Tax Invoice if the reimbursement is considered a part of your taxable supply (as a pure agent, separately shown). This means you treat the reimbursement as part of your overall invoice but clearly show the reimbursed amount separately.

Raise a Bill of Supply if the reimbursement is for exempt or non-taxable supplies.

Do not raise a Debit Note for reimbursement.

Pooja Mehta

Pooja Mehta (Querist)
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12 November 2025 It is only reimbursement amount nothing else charged, if i issue tax invoice then gst should be charged, which i don't want

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 November 2025 This amount is generally added into your taxable supplies separately. No need to raise bill separately. This time you may raise bill of supply.

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