Reimbursement of transport

This discussion explores whether Goods and Services Tax (GST) is applicable to transport reimbursements. Generally, if you incur an expense that is rightfully the supplier's responsibility, and the goods were invoiced to a different registered person, the reimbursement itself is not considered a supply and therefore not taxable. However, under Section 15(2)(b) of the CGST Act, if the recipient pays expenses on behalf of the supplier, these 'out-of-pocket' expenses can be included in the value of supply and become taxable.