GST Implication for Reimbursement on Declaration Basis

[Joydev Dasher]

As per terms of engagement as an advisor on retainership basis, I receive certain monthly amount by raising invoice on which GST is duly applied. Additionally, I receive

(i) monthly reimbursement towards local travel equivalent to certain litres of petrol and

(ii) for travelling outstation, a sum of money towards travel incidentals.

Both the amounts are reimbursement on declaration basis and I do not have bills/ receipts for the entire amount. These are not parts of my invoice either. Not sure if 'pure agent' criteria get fulfilled. Do I have to pay GST on either of these? Since the amounts are not on invoice, how to deal with that. Thanks.

AI Summary

GST valuation of reimbursement claims turns on pure agent conditions and separate invoicing for travel-related recoveries.
GST valuation of reimbursement amounts received by an advisor depends on whether they satisfy the pure agent conditions under Rule 33 of the CGST Rules. Reimbursements for local travel and outstation travel incidentals received on declaration basis, without third-party bills in the recipient's name and without separate invoicing, are generally treated as part of the taxable value under Section 15 of the CGST Act and subjected to GST. Pure agent treatment requires authorisation, exact recovery of actual third-party expenditure, and separate disclosure in the invoice.