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Rcm on reimbursment of expenses incurred by employee

694 views 1 replies

Dharam Nonu

3 Points Joined February 2018

emplyee of company take a cab on rent for office use and supplier of service issued invoice in the name of employee

after that employee submitted the invoice to the company and taken reimbursment from company

my query is that

will company be liable to pay gst under RCM or not?

note : rent a cab fall under RCM if service provider is other then body corporate and service receiver is a body corporate

note : service provider is a unregistered proprietor under gst

Replies (1)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

In GST reimbursement of expenses is attract GST. Yes Expense incurred in capacity of Pure Services under Rule 33 is not exempted in GST.

As per Section 2(93) of CGST Act Company is recipient who is ultimately making payment to cab dealer on behalf of Employee.

So In term Notification 22/2019 CT rate:
Services provided by way of
renting of a motor vehicle
provided to a body corporate by any person other than body corporate RCM is applicable.
Thus need to do RCM .

Note : Service providers is charging 12% on FCM than RCM is not Applicable