GST on Debit Note

[Kaustubh Karandikar]

XYZ(India) is participating in an exhibition in Dubai. The Air Fare charges incurred for the same will be reimbursed to XYZ at actuals by EEPC(India) which is a Govt. of India undertaking. For this purpose, XYZ is required to issue a debit note. Is XYZ required to charge GST in the debit note for this transaction?

AI Summary

GST Applies to Airfare Reimbursement for XYZ's Dubai Exhibition, Says Expert; Review Advance Rulings for Clarity XYZ, an Indian company, is participating in an exhibition in Dubai and will have its airfare reimbursed by EEPC, a government undertaking. XYZ needs to issue a debit note for this reimbursement and inquires whether GST should be charged. A respondent, Kasturi Sethi, indicates that reimbursements are taxable under GST if they are against a taxable supply. Sethi references a decision by the Authority for Advance Ruling in Karnataka, which suggests that such transactions are typically subject to GST, emphasizing the importance of reviewing relevant rulings for clarity.