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?

[KASTURI SETHI]

Reimbursements are always taxable under GST if these are against taxable supply.There is a FAQ.

[KASTURI SETHI]

Dear Sir,

Peruse the following decision of AAR Karnataka word for word up to the end.Emphasis is supplied on period.

2019 (30) G.S.T.L. 678 (A.A.R. - GST) = 2019 (10) TMI 793 - AUTHORITY FOR ADVANCE RULING, KARNATAKA IN RE : ALCON CONSULTING ENGINEERS (I) PVT. LTD.

AI Summary

Reimbursement taxability: reimbursements for taxable supplies attract GST, so debit notes must include GST where applicable.
Reimbursement of expenses incurred on behalf of a principal is taxable under GST when made against a taxable supply; a supplier issuing a debit note for airfare reimbursed by a government undertaking must account for and charge GST on that reimbursement, consistent with Advance Ruling precedents.