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input tax credit

Swarna Latha Reddy (18 Points)

07 December 2017

can we claim input tax credit on expenses that can be reimbursed

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Shashikant Varshney (Chartered Accountant) (763 Points)
Replied 07 December 2017

Yes, you can subject to your GSTIN no on that as well as consumption of service/goods at your place.

Rakesh Sarswath (Article Student-GST Specialization) (190 Points)
Replied 07 December 2017

As per section 15 of CGST, we need to include any of the expenditure which the supplier has incurred for a supply of goods or services even though such expenditure is reimbursed by a receiver of service or goods.

Since you are including such expenditure in your outward GST payment you can claim ITC as well for the same.

Further, there is no specific restrictions are provided in this regard considering you must get the tax invoice in your company name and GSTIN number.

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Swarna Latha Reddy (18 Points)
Replied 07 December 2017

shall I be eligible be to take credit on expenses which are reimbursed if I act like a pure agent and I will not include this amount in the invoice value

Rakesh Sarswath (Article Student-GST Specialization) (190 Points)
Replied 07 December 2017

As per my view, you cannot since you have not incurred such expenditure for providing outward supplies.

Swarna Latha Reddy (18 Points)
Replied 07 December 2017

tnq u soo much for Ur answer
I have one more doubt does the special incentive to the director attract GST

Rakesh Sarswath (Article Student-GST Specialization) (190 Points)
Replied 07 December 2017

If he is a non-executive director (other than the employee) then the company shall require paying GST under reverse charge however for executive director GST shall not attract.

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