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

Reverse charge on supplies from unregistered vendors may make the recipient liable to pay tax and affect ITC entitlement.
Reimbursement for employee travel expenses has GST consequences: supplies from registered suppliers do not attract reverse charge, while supplies from unregistered suppliers attract reverse charge if aggregate value exceeds the prescribed daily threshold. Entitlement to input tax credit depends on correct invoicing-bills in the company's name or employee name with c/o company and GSTIN facilitate ITC. Lodging services are subject to place-of-supply rules for immovable property, affecting whether central and local tax components are charged and whether ITC is claimable; practical advice is to obtain invoices bearing the appropriate company or branch GSTIN.