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GST on Reimbursement of Expenses

Vipul Acharya (Account Officer) (652 Points)

31 October 2019

Whether GST applicable on Reimbursement of Expenses when no supporting available

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3 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 31 October 2019

Yes GST applicable...... except in case of pure agent it's Exempted.

So if you can put your query with example the precise reply shall be given.

Vipul Acharya (Account Officer) (652 Points)
Replied 01 November 2019

As per agreement between us and Landlord we paid 50% stamp duty to landlord along with registration charges, so for the same reimbursement invoice to be raised by landlord

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 03 November 2019

Dear Vipul

As per the Agreement between Landlord & you , the Interest of Landlord is arising to reimburse 50% Liability of stamp duty from You.
The main supply of Landlord is supply services by renting & As per Section 15(2) . Reimburse of expenses incurred by supplier in connection with supply the taxable supply is Taxable.

So as it's not cover under the definition of Pure Agent , the GST will be applicable.

Note:
Can also Refer the AAR Maharashtra : The theatre owner collecting electricity & water charges from tenant held to be taxable.