TaxTMI 
TaxTMI 
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
REIMBURSEMENT OF EXPENSES ON AIR TICKETS
24 Jan 2018 
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Pure agent exclusion may exclude reimbursed travel costs from taxable value if strict agency conditions are satisfied.
Reimbursements of air or train tickets are excluded from taxable value only when the supplier qualifies as a pure agent: acting on recipient authorisation, separately indicating third party payments in the invoice, procuring supplies in addition to its own services, holding no title, and receiving only the actual amount incurred. If these conditions are not met-such as where travel is in the supplier's name to enable service-ticket reimbursements form part of the consideration and attract GST; input tax credit treatment depends on the general input tax credit provisions. (AI Summary)
Reimbursements of air or train tickets are excluded from taxable value only when the supplier qualifies as a pure agent: acting on recipient authorisation, separately indicating third party payments in the invoice, procuring supplies in addition to its own services, holding no title, and receiving only the actual amount incurred. If these conditions are not met-such as where travel is in the supplier's name to enable service-ticket reimbursements form part of the consideration and attract GST; input tax credit treatment depends on the general input tax credit provisions. (AI Summary)