Applicability of GST on Reimbursement of foreign expenditure to NRI

[MANOHAR KALBURGI]

Dear Sir,

The Indian Pvt Ltd Co. pays reimbursement expenditure to the NRI who act as a Consultant and such reimbursement exp includes- Travel exp, gifts given to potential customer/s, internet charges, accommodation exp etc.,

These expenditures are paid in relevant foreign currency (USD).

Does these reimbursement expenses shall be liable for GST ?

Thanks in advance.

AI Summary

GST Applicability on Reimbursement of NRI Consultant's Expenses by Indian Company: Differing Views on Liability An Indian private limited company reimburses an NRI consultant for expenses like travel, gifts, internet, and accommodation in USD. The query concerns whether these reimbursements are subject to GST. One response suggests that if the expenses occur outside India, they are not liable for GST. Another argues that if the expenses are necessary for the consultant's services to the Indian company, they should be included in the service value and thus subject to GST. The discussion highlights differing views on the applicability of GST depending on the nature and location of the expenses.