GST Chargeability

[Yogesh Khetrapal]

Mr. A (registered dealer) moves on a project on behalf of Company ABC Ltd., received Hotel Bill in the name of ABC Ltd. and claim reimbursement of the same in addition to very nominal amount against D.A.

Whether Mr. A can show receipts as Pure Agent?

Whether Hotel Bill can be taken aside from GST Chargeability?

Whether it makes any difference if Mr. A is running his own Co. XYZ Ltd. and raise the Invoice for professional Services on ABC Ltd. in addition to the reimbursements against Hotel and D.A. and receives the fund in the name of XYZ Ltd.

Please also advice TDS implications to be taken care through ABC Ltd.

AI Summary

Pure agent treatment for reimbursed hotel expenses may affect GST chargeability, while professional invoices with reimbursements attract GST.
Reimbursed hotel and travel allowances may be excluded from GST if they qualify as pure agent transactions; however, where the intermediary or its company invoices the principal for professional services and includes reimbursements for hotel and DA, those professional charges and attendant allowances are liable to valuation under GST and included in the taxable base. TDS obligations on such professional payments should be applied by the principal.