REIMBURSEMENT OF EXPENSES ON AIR TICKETS

[ROHIT GOEL]

WHETHER A SERVICE PROVIDER WHO GET REIMBURSEMENT OF TRAIN TICKETS, AIR TICKETS ON ACTUAL BASIS LIABLE TO PAY GST @18% ON THE COST OF TICKETS

AI Summary

Is GST at 18% applicable on reimbursed travel costs for Chartered Accountants under Rule 33 of CGST Rules, 2017? A discussion on whether a service provider, such as a Chartered Accountant (CA), who receives reimbursement for air and train tickets, is liable to pay GST at 18% on those costs. One viewpoint suggests that GST should not be charged on reimbursed ticket costs as they are not part of the transaction value and GST is already paid, preventing double taxation. Others argue that if the CA is not acting as a 'pure agent,' travel costs should be included in the professional fees, making them subject to GST. The 'pure agent' concept is debated, with conditions outlined under Rule 33 of the CGST Rules, 2017.