TaxTMI 
TaxTMI 
TaxTMI 
GST on reimbursement of expenses
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST on reimbursement of expenses<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 22-9-2021 Last Reply Date:- 24-9-2021 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>XYZ(India) supplying services of Freight Forwarders / Clearing and forwarding agents and are mainly in providing transportation services in relation to import and export by sea and air. During providing these servi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ces, they pay on behalf of their client certain charges to different authorities and then get it reimbursed from their client at actuals. 1) Is XYZ required to pay GST on these charges recovered? If no, are they required to proportionately reverse the input tax credit for common services since not charging GST on reimbursement? Reply By Ganeshan Kalyani: The Reply: Sir, clearing and forwarding a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gents must be satisfying the condition of pure agent. If that is the case then the principal on whose name the bill must have been raised would be able to take ITC even though the payment to third party is made by clearing and forwarding agent. And since clearing and forwarding agent will not be claiming ITC the reversal of common ITC does not arise. Reply By KASTURI SETHI: The Reply: I fully co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncur with the views of Sh.Ganeshan Kalyani Ji. Such reimbursement does not conform to the parameters of common services for the purpose of reversal of ITC. Reply By Shilpi Jain: The Reply: The amount of expense which is received as reimbursement from the customer would not fall under the category of exempt supply and thereby would not require reversal of common ITC to the extent of these pure a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gent reimbursement. This is only and exclusion from the value.<br> Discussion Forum - Knowledge Sharing ....