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?

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.