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Sales promotional fee received

This query is : Resolved 

06 July 2018 For Example:

ABC (Firm) XYZ(fIRM)


1) ABC is incurring technical service charges on behalf of XYZ.
ABC is making bill to XYZ for reimbursement of amount.Is GST is
applicable on this bill?(Getting the amount, only what ABC spent)

2)ABC is doing sales promotional activities for XYZ and getting sales promotional fee
ABC is issuing bill for this amount.Is GST is chargable on this bill?

3)ABC is incurring business promotional expenses on behalf of XYZ.
ABC is issuing bill to get reimbursement of this amount(for getting only spent amount)
GST is applicable in this reimbursement bill?

kindly give detailed answer for each question separately.....

07 July 2018 Gst is chargeable for sales promotion activities undertaken. For reimbursements Gst would not be applicable only when the pure agent conditions as specified in Rule 33 of the cgst rules is fulfilled


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