GST on amount recovered from contractor

[Kaustubh Karandikar]

A Worker was on pay roll of the contractor. On his death, compensation to his family was initially paid by XYZ. However, as advised by the Insurance Company, it was to be paid by the contractor and therefore, the amount paid to the employee was recovered from the contractor by XYZ. Is XYZ required to pay GST on the amount recovered from the contractor?

AI Summary

GST Not Applicable on Reimbursement from Contractor for Worker Compensation; No Supply Equals No Taxable Event A discussion on whether GST applies to an amount recovered by XYZ from a contractor after compensating a worker's family. The consensus among participants is that GST is not applicable because the amount recovered does not constitute a payment for a supply or service. It is considered a reimbursement of a wrongly paid amount, not a taxable supply under GST. Participants agree that without a supply, no GST is due on such receipts.