TaxTMI 
TaxTMI 
GST on Debit Note.
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....ST on Debit Note.<br> Query (Issue) Started By: - MAHESH MAIYA Dated:- 3-11-2020 Last Reply Date:- 10-11-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Experts, We are 100% subsidiary of German Company (parent co). As per parent company requirement, we (subsidiary) get our accounts audited every calender year. The auditor will raise his professional GST bill on us(subsidiary) a....
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....nd we debit the total invoice amount to our Parent Company. The debit note will be either re-imbursed by our parent company OR we will adjust the debit note amount against their future payments. What is the GST implication on us (subsidiary)?. If there is GST implication on subsidiary, would it not be amounting to double taxation on same service? Mahesh Maiya. P Reply By YAGAY andSUN: The Reply:....
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.... Place of provisions of services will determine the applicability of GST on Debit Notes. If you have agreement with your counterpart only for recovering the amount by issuance of Debit Note without providing any services or services availed by you in India, then, applicability of GST will be doubtful. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per section 2 (52) of GST Act, 2017 &quo....
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....t;goods‖ means every kind of movable property other than money and securities". hence the debit note raised by you and amount realised or adjusted against such debit note can not be treated as supply of goods or services. Hence no gst is leviable on such transaction. Reply By KASTURI SETHI: The Reply: Dear Querist, You have received reimbursement from your parent company on account o....
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....f audit service (professional service) received from Auditors. Such reimbursement is not against any supply of service. It is mere transaction in money. Your reimbursement from parent company does not fall in the definition of service as per Section 2 (102) of CGST Act. The Auditors have supplied taxable service to your company (the subsidiary). The supplier (Auditors) are liable to GST, if thresh....
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....old exemption limit is crossed. As per Section 2(102) of CGST ACT "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Not liable to GST. I support th....
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....e views of both experts. Reply By Ganeshan Kalyani: The Reply: The element of service is missing, hence not taxable. I agree with the views of the experts.<br> Discussion Forum - Knowledge Sharing ....