Reimbursement of IGST paid by CHA.

[Narendra Soni]

Dear sir.our Cha paid IGST on our import.now he want to reimbursement of IGST from us.Is GST is applicable on such reimbursement.How he will raise invoice.kindly guide.

[KASTURI SETHI]

In my view no GST on such reimbursement is applicable. CHA is example of pure agent.

[Narendra Soni]

Sir how Invoice will be raised by CHA without GST.tax Invoice can only be raised for charging GST.

[RadheyShyam Mangal]

In GST regime the CHA must raise invoice otherwise how the exporter or importer will get the credit of the gst involved on such reimbursement.

[KASTURI SETHI]

I support the views of Sh.R.S.Mangal, an expert.

[Kishan Barai]

IGST found in Bill of Entry could be used to offset goods sold in CGST & SGST locally along with inter State sale via IGST

[Nagarajan PV]

Dear Sir,

IF the re-imbursement charges such as CFS or Shipping Line or any other charges incurred by CHA in the course of Customs Clearance, if such third party bills are in your Name with your GSTN details, the ITC will come directly to your account credit. These are covered under Rule 7 - Pure Agent.

Hence CHA can raise Invoices without GST.

Regards,

Nagarajan

[Kishan Barai]

True because CHA already pay to shipping line first before exporter and already paid GST but CHA will provide another personal services bill for doing exporter work along with other invoices for CHA personal services 18% GST would be charged on those and exporter are paying that.

For example, Official Pan Card in India Cost 106 INR bother agent charges 250 INR, so agents are not exempted from GST, they need to charge GST for their services if they are registered

Tips: To save GST they can provide official bill of 106 paid and make the bill of 144 to customer for their services so GST would be charged on 144 (18% in case of services) = 169.92

AI Summary

Reimbursement of IGST: treated as pure agent passthrough so GST not leviable if third party bills are in importer's name.
Reimbursement of IGST by a Customs House Agent is a non taxable passthrough when the CHA functions as a pure agent and third party charges are billed in the importer's name with GST details, allowing the importer to claim input tax credit; if the CHA renders its own services beyond pass through, those services are taxable and the CHA must issue a tax invoice charging GST so the importer can obtain credit.