XYZ(India) supplying services of Freight Forwarders / Clearing and forwarding agents and are mainly in providing transportation services in relation to import and export by sea and air. During providing these services, they pay on behalf of their client certain charges to different authorities and then get it reimbursed from their client at actuals. 1) Is XYZ required to pay GST on these charges recovered? If no, are they required to proportionately reverse the input tax credit for common services since not charging GST on reimbursement?
GST on reimbursement of expenses vis - a - vis reversal of ITC
Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)
22 September 2021
CAclubindia
