Reimbursement of Traveling and visit

[Guest]

A manufacturer supplies equipment to a buyer. Due to incorrect installation by buyer equipment malfunctions. Buyer contacts seller to come urgently to resolve issue and agrees to bear traveling and visit expenses. The supplier travels by air and taxi to reach destination urgently and return. Buyer reimburses traveling expenses incurred to seller. Seller does claim ITC on traveling expenses incurred. Is GST applicable on reimbursement received for traveling and visit.

AI Summary

GST Applicability on Travel Expense Reimbursement: Input Tax Credit Claim or Pure Agent Role? Invoicing Clarification Needed. A manufacturer supplies equipment that malfunctions due to incorrect installation by the buyer, who then requests the seller to resolve the issue and agrees to cover travel expenses. The seller travels urgently and is reimbursed by the buyer. The discussion revolves around whether GST applies to the reimbursement. Opinions vary: one view suggests GST applies if the seller claims Input Tax Credit (ITC) on travel expenses, while another posits that if the seller acts as a pure agent, GST is not applicable. Clarification is sought on invoicing and whether ITC is claimed by the seller or buyer.