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Gst on reimbursement of loading/unloading
If we pay loading charges to loader s... But after wards we recover the amount from any other party then gst will be applicable on recovered amount?? For eg we paid rs 1000 for loading 1000 kg goods... Afterwards we recover 1500 from transporter..so net income for us is 500. Will gst be applicable on 1500??
Replies (1)
| GST applicability on loading/unloading charge recovery depends on whether it is a pure reimbursement or a service supply: 1. Pure Reimbursement (Pure Agent): If you are acting strictly as an agent — paying loading charges exactly on behalf of the recipient, at actual cost, without any markup, and the recipient authorizes you to incur this expense on their behalf — then under Rule 33 of CGST Rules (Pure Agent exception), the reimbursement can be excluded from the value of supply, and no GST is applicable on that specific recovery. Conditions for Pure Agent: (a) Supply of service on behalf of recipient, (b) costs paid at actual, (c) recipient knows you are acting as agent, (d) shown separately in invoice. 2. If Not a Pure Agent (Recovery with Margin or Without Authorization): If you are recovering loading charges as part of your composite service (e.g., supply + loading arranged by you as part of your contract), then it becomes part of the value of composite supply — GST applies on the entire amount recovered including loading charges. 3. SAC and Rate: Loading/unloading services fall under SAC 9967 — Cargo handling services — at 18% GST. 4. Practical Recommendation: If you want to avoid GST on the recovery, ensure strict compliance with all Pure Agent conditions and reflect it as a pass-through item in your invoice separately. Any doubt — charge GST and let the recipient claim ITC. |
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