payment made on behalf of group companies

[Kaustubh Karandikar]

XYZ (Proprietory Concern) is making payments to third parties such as salary, customs duty, insurance premium etc on behalf of their group companies / related parties. Subsequently, these group companies are paying back these mounts to XYZ as per the availability of funds. Will it have any GST implications for XYZ or the Group Companies?

AI Summary

GST Impact on XYZ's Payments for Group Companies Debated: Consideration Key to Taxability; Documentation Advised for Clarity A discussion on the GST implications of XYZ, a proprietary concern, making payments on behalf of group companies. Amit Agrawal suggests that such financial transactions are not taxable under GST unless there is consideration involved. Ganeshan Kalyani argues that repayment could be seen as consideration, making GST applicable. Padmanathan Kollengode emphasizes the need to examine the nature of the arrangement, noting that if XYZ provides services, GST may apply. Shilpi Jain advises documenting the arrangement to clarify it as a payment arrangement, suggesting that services remunerated by interest are GST-exempt.