Gst on reimbursement of expenses

No GST is applicable on reimbursement expense by C&F. Yes it falls under defination of Pure Agent

hi according to me Pure Agent concept applicable when you have been entered with contractual agreement with agent and fullfill all conditions as per rule. i.e.
1 Enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both.
2 Neither intends to hold or holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply.
3 Does not use for his own interest, such goods or services so procured.
4 Receiver only the Actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account.
according to above if electricity bill is on account of your c&f agent its not full fill condition no. 3 and 4 because eletricity may be used for his own or for other customer.....
consequences may arise in this case...

Sir, 

Thank you for your kind reply. 

Agreement terms regarding electricity bills:

Reimbursement of Electricity charges will be made by the company at its sole discretion and as fixed from time to time.

Internal Approval:

Electricity charges will be reimbursed at the actual rate subjected to 40 units per day. Hence the C & F is not claiming the entire bill amount . 

Will it still be liable to GST?

Will the C & F still be not fullfilling the 3rd and 4th conditions?

 

Thank you sir.