GST ON REIMBURSEMENT OF MANAGEMENT EXPS

[tejas kulkarni]

IS GST CHARGEABLE ON REIMBURSEMENT OF MANAGEMENT EXPS i.e. salary , maintainance exps.etc . if yes under which head of service.?

please Guide.

AI Summary

GST on Reimbursed Management Expenses: Classified as Composite Supply with Manpower Services as Principal Supply Under CGST Act A discussion on whether GST is chargeable on the reimbursement of management expenses, such as salaries and maintenance, was initiated by a cooperative society providing manpower services to a sugar factory. The society invoices the factory for labor services and seeks clarification on the GST implications for reimbursed management expenses. Experts in the forum suggest that these expenses are taxable, classifying them as a composite supply under the CGST Act, with the principal supply being manpower services. The applicable GST rate and heading should align with the principal supply, and no pure agent benefit is available.