Impact of gst on reimbursement of amc charges

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Query: AMC bill inclusive of GST is charged to Company X and bill payment is done by company X.

 But the actual service is for Company Y. Company Y is sister concern of Company X. 

For claiming the reimbursement, can Company X raise a debit note without charging GST.  Both company will

not avail input credit on the AMC service.

Please advise.

Srinivasan

Replies (1)

Yes, you can raise a debit note without charging GST as it would be covered under pure agent concept prescribed under Rule 33 of CGST Rules.

Please remember to check the conditions prescribed under that rule before taking the final call.


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