https://www.taxtmi.com/caselaws?id=431242 AAR Karnataka ruled that reimbursement of actual expenses incurred by employee staff on behalf of the company is not subject to GST or Reverse Charge Mechanism. Employee services to employers fall under Schedule III of CGST Act 2017, treating them as neither supply of goods nor services. For whole-time directors functioning as employees, only separately declared remuneration subject to TDS under Section 194J of IT Act is taxable under reverse charge. Reimbursed expenses represent company's own expenses paid through employees, not consideration for taxable supply. Reverse charge calculation applies to gross consideration excluding GST. en-us Fri, 02 Dec 2022 00:00:00 +0530 Fri, 11 Apr 2025 15:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431242 AAR Karnataka ruled that reimbursement of actual expenses incurred by employee staff on behalf of the company is not subject to GST or Reverse Charge Mechanism. Employee services to employers fall under Schedule III of CGST Act 2017, treating them as neither supply of goods nor services. For whole-time directors functioning as employees, only separately declared remuneration subject to TDS under Section 194J of IT Act is taxable under reverse charge. Reimbursed expenses represent company's own expenses paid through employees, not consideration for taxable supply. Reverse charge calculation applies to gross consideration excluding GST. Case-Laws GST Fri, 02 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431242