Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

E-invoice applicability on re-imbursment income?

743 views

Save Share

Mukesh Parmar

49 Points Posted on 03 April 2021

Reimbursement of income is included in turnover in GST act or if it's than e-invoice is applied for reimbursement invoice also?

Replies (3)

Quick Summary

This discussion clarifies whether reimbursement income, such as customs duties or stamp duty paid on behalf of importers, is considered part of taxable turnover under GST. It explains that if a company acts as a 'pure agent' and is reimbursed for these expenses without adding any profit margin, these amounts are generally not included in their aggregate turnover. Consequently, e-invoicing is typically not required for such reimbursement transactions.

Rajkumar Patel

373 Points Posted on 03 April 2021

Can explain more with example?

Mukesh Parmar

49 Points Posted on 03 April 2021

XYZ shipping company having taxable turnover Rs. 45 lakhs and reimbursement income of Rs. 25 lakhs Which they recover from there importers then in that case e-invoice is applied to XYZ shipping company?

reimbursement income e.g. customduty, stamp duty, PPQ charges etc.

firstly XYZ shipping company paid this charges and then recovered this from there importers there is no profit to XYZ Shipping company.

1) know is it included under turnover?
2) e-invoice is applied to the company?

Pankaj Rawat

GST Practitioner

29904 Points Posted on 04 April 2021

No..... not required to generate E-invoice on Exempted Income.

In term Rule 33 of CGST Act if it is reimburse in capacity of Pure Agent then it is not be included in aggregate turnover & Not required to generate E-invoice for the same.