Non Taxable Supply vs Non GST Supply

[Vaishnavi Bubesh]

Dear Experts,

The definition of exempt supply u/s 2(47) of CGST Act includes Non Taxable Supply. Does the term "non taxable supply" is equivalent to "Non-GST supply" as per table 3.1.e of Form GSTR-3B & Table -8 of GSTR-1?

If yes. Whether ITC reversal u/r 42 needs to be computed on total of (exempt supply + non gst supply )?

We are showing reimbursement amount in Invoice as Non GST supply in GSTR-1 & 3B. whether reversal u/r 42 is required on non gst supply?

AI Summary

Pure agent reimbursements excluded from value of supply, so they need not trigger ITC reversal under GST rules.
Non-taxable supply is distinct from non-GST supply: non-taxable supplies are included within exempt supply, while non-GST supplies are out-of-scope. Reimbursements treated as pure-agent recoveries are excluded from value of supply and aggregate turnover, should not be shown as non-GST supply in GSTR-1 or GSTR-3B, and do not attract Input Tax Credit reversal under the relevant rules; taxpayers must differentiate disbursements from reimbursements and amend returns if misreported.