GST on reimbursement of air tickets

[Rajesh Kumar]

One of our consultant/director is submitting his air tickets for reimbursement with GST, air tickets already attract GST. is it correct?

[VaibhavKumar Jain]

Dear Rajesh,

a. In case of consultant, say your consultant to issue tax invoice (as technical service) with ticket value plus GST @ 18%. This is because, your consultant is eligible for GST credit on air ticket. Based on tax invoice, you are also eligible for ITC charged by consultant.

b. In case of director, reverse charge is applicable. Hence, if your director purchased the ticket, it might be possible that your GST No. is not mentioned on the ticket and the air line shall not issue any tax invoice to you. In this situation, to establish "Pure Agent" will be difficult. Hence, you are liable to pay GST @18% under RCM on whole amount air ticket.

The situation may be different, if the air ticket is booked on your name but initial payment made by director and subsequently take reimbursement. Here, the Pure Agent concept may be established and you may not pay GST under RCM on reimbursement.

Gopabandhu

[Himansu Sekhar]

Sir,

What is your issue? You will only reimburse the amount which includes all the taxes

With regards

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 8(iii) of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as amended " Transport of passengers, with or without accompanied belongings, by air in economy class" is chargeable to gst @ 2.5%. Therefore air ticket attracts gst.

[KASTURI SETHI]

Dear Querist,

Your thinking is correct.

[YAGAY andSUN]

Reimbursement of expenses attracts GST unless until conditions of pure agent fulfilled.

[Ganeshan Kalyani]

Though gst was paid to airline company when reimbursement is sought it will again attract gst.

AI Summary

Implications of GST on Air Ticket Reimbursement: ITC, Reverse Charge, and 'Pure Agent' Concept Explained A discussion on the Goods and Services Tax (GST) implications for reimbursing air tickets involves multiple viewpoints. A consultant can issue a tax invoice with GST, allowing for input tax credit (ITC) eligibility. For directors, reverse charge mechanism (RCM) applies, requiring GST payment on the entire ticket amount unless the 'Pure Agent' concept is established. Air tickets in economy class attract GST at 2.5%. Generally, reimbursement of expenses attracts GST unless the 'Pure Agent' conditions are met. There is consensus that GST is applicable on reimbursements even if initially paid to the airline.