Reimburshment to employee on tour expense

[Narendra Soni]

Our marketing employee go on tour for business purpose, they claim reimburshment of fare/hotel bill /conveyance etc.

1.Whether GST is payable by company on bills under reverse charges issued by un registerded service providers..

2.Some bills have charged GST, is the ITC eligible to company.

AI Summary

Understanding GST on Employee Travel Reimbursements: Reverse Charge Mechanism & Input Tax Credit Explained An employee inquires about GST implications on reimbursements for business travel expenses, such as fare and hotel bills, especially when bills are from unregistered service providers. Responses clarify that if services are from unregistered dealers and exceed 5000 per day, reverse charge mechanism (RCM) applies. For input tax credit (ITC) eligibility, bills should ideally be in the company's name with its GSTIN. However, if an employee's name is on the bill, it should include the company's details for ITC purposes. Hotel stays may be eligible for ITC, but not food bills.