XYZ Ltd. (Head Office) is incurring development cost for creation of a common digital portal, which will subsequently be allocated among interested other GSTIN of the same entity on a cost-to-cost basis.
Whether such recovery/allocation of Cost from HO to other GSTIN would require issuance of a cross-charge invoice under GST, or can it be treated as a mere cost allocation/reimbursement without GST implications?
GST cross-charge for common development cost recovery from group GSTINs or mere cost allocation without GST implications. Determination is sought on whether GST cross-charge applies when a head office incurs common development cost for creating a digital portal and later allocates or recovers that cost from other GSTINs of the same entity on a cost-to-cost basis. The core issue is whether such internal recovery must be invoiced as a cross-charge under GST or whether it may be treated as a mere cost allocation or reimbursement without GST implications. (AI Summary)
TaxTMI 
TaxTMI 
