GST on employee reimbursement

[Archna Gupta]

Please reply to my below mentioned query:

Suppose the employer is a company and its employees incur certain expenditure such as local conveyance, travelling expenses, boarding & lodging for office work or any other expenses on behalf of its employer company. The employee files with the company Reimbursement claim sheet for a certain period then what will be the treatment in the following situations:

The invoices are raised in the name of the employee and the supplier is:

► Unregistered (invoice is raised during the period 01-07-17 to 12-10-17). If the company claims these expenses in its P&L a/c under respective heads such as Conveyance exp, Travelling expenses etc. whether it would be required to deposit GST under reverse charge? In certain type of expenses such as auto fare, food expenses from road side vendor etc. where the invoices are not available, is the company is liable to pay GST under reverse charge?

► Registered supplier then the company would simply claim expenses (including GST) in its P&L a/c .

►Whether the above transactions would be treated as supply as the invoices are in the name of the employee.

AI Summary

GST Input Not Claimable on Employee Travel Reimbursements; Expenses to Be Recorded in Profit and Loss Account An individual inquired about the GST implications on employee reimbursements for expenses like local conveyance, travel, and lodging incurred on behalf of their employer. The query focused on whether GST under reverse charge is applicable when invoices are issued in the employee's name by unregistered suppliers and when invoices are unavailable, such as for auto fares or food from roadside vendors. The response indicated that GST input cannot be claimed on such traveling expenses, and the company should account for these expenses in its profit and loss account, especially when dealing with registered suppliers.