Services to related person

@ Kaustubh Ram Karandikar Garu,

Based on the above facts, I am of the view that the transaction that was happed is a pure transaction in money. XYZ paid the tax(money) and later recovered from PQR. Transactions in money are not taxable in GST. when a transaction is to be taxable in GST it should be "supply" first and it should be provided in the course or furtherance of business i,e it should be provided as a part of his business but for consideration subject to schedule-I.

I hope XYZ is not in the business of providing those types of temporary loans and recover the fee/interest for it. However, interest is exempted but other fees in relation it may be taxable.

Hope I am clear.

Since the service provided would suffice the condition of pure agent as mentioned under igst that would not be supply and no gst would be liable in the said transaction