Reimbursement of expenses not taxable where no service exists; GST requires an identifiable supply beyond cost-sharing.
Pure cost-to-cost recoveries supported by third-party invoices and without any markup do not constitute taxable receipts because no service is rendered by the recipient. Under GST, taxability requires a supply-the presence of a service or good; mere inter-entity cost-sharing where a paying entity acts as a pass-through for third-party services should not attract GST if invoices match amounts and no profit element exists. Contracts and documentation should therefore establish the absence of a service element to resist tax claims. (AI Summary)

Input Tax Credit entitlement: ITC reversed for township electricity; Duty Credit Scrip exclusion applies only from the amendment date.
The court treated electricity supplied to an employee township as a welfare activity incidental to business, not part of manufacturing, and held that ITC on coal attributable to township consumption must be reversed under Rule 42. The court also held that the amendment excluding Duty Credit Scrips from the exempt supply base is substantive and prospective, so its benefit applies only from the amendment's operative date and not to prior periods. (AI Summary)