GST applicability for Reimbursement of Salary(Pure Agent) - on behalf of Indian Company

[Ojas Shah]

Dear Sir/Madam,

Kindly let me know about the GST applicability for Reimbursement of Salary By a Company A on behalf of Indian Company B.

Where the company A making payment does not provide any other service/supplies to the company B other than the reimbursement of Salary.

Thank You !!

AI Summary

Reimbursement of salary: genuine pass-through payments not constituting consideration are outside GST if no taxable supply exists.
GST on salaries paid by one company on behalf of another turns on whether the payment is a genuine reimbursement (a non-consideration pass-through) or payment for a taxable supply. If no service is provided by the paying company and the amount is not received against a taxable supply, the payment does not constitute consideration and is not subject to GST.