TMI BlogNon Taxable Supply vs Non GST SupplyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, The definition of exempt supply u/s 2(47) of CGST Act includes Non Taxable Supply. Does the term non taxable supply is equivalent to Non-GST supply as per table 3.1.e of Form GSTR-3B Table -8 of GSTR-1 ? If yes. Whether ITC reversal u/r 42 needs to be computed on total of (exempt supply + non gst supply )? We are showing reimbursement amount in Invoice as Non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST supply in GSTR-1 3B . whether reversal u/r 42 is required on non gst supply? - Reply By Amit Agrawal - The Reply = What is cause of 'reimbursement'? Is it recovery as 'pure agent' referred u/s 33 ? - Reply By Amit Agrawal - The Reply = Please reads as .......... u/r 33 - Reply By SAIRAM LBS - The Reply = Dear Amit Ji, Yes. the reimbursements are amount recov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered from customer as pure agent, as certain expense are incurred on behalf of customer, which is shown in invoice. - Reply By KASTURI SETHI - The Reply = There is a lot of difference between 'non-taxable supply' and 'non-GST Supply'. Non-GST supply means out of the scope of GST i.e. petrol, diesel, LPG , liquor etc. Section 2 (78) of CGST Act : non-taxable supply mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act ; Section 2 (47) of CGST Act exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 , or under section 6 of the Integrated Goods and Services Tax Act , an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d includes non-taxable supply; Exempt supply includes non-taxable but does not include non-GST supply. - Reply By Amit Agrawal - The Reply = Reimbursement of expenses as 'pure agent' u/s 33 is not part of 'Value of supply' u/s15 . Accordingly, same cannot be equated with non-taxable supply or non-GST supply and you should not show them as Non-GST supply in Form G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STR-3B . Consequently, Rule 42 43 will not be into picture for such reimbursements. P.S. Ideally, such reimbursements should not be part of your turnover in your books of accounts, but same should be adjusted / knocked off against corresponding expenses incurred by you on behalf of client. These are ex facie views of mine and the same should not be construed as professional advice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / suggestion. - Reply By KASTURI SETHI - The Reply = I fully agree with Sh.Amit Agrawal Ji. The querist must be able to differentiate between 'disbursement' and 'reimbursement' with documentary evidence. - Reply By KASTURI SETHI - The Reply = Illustration in Rule 33 talks of disbursement. So one has to be careful. - Reply By Shilpi Jain - The Reply = Agree that pure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent reimbursements are not part of turnover/taxable value i.e. aggregate turnover, So no ITC reversal required. - Reply By Padmanathan Kollengode - The Reply = Agree with Ld Amit ji. No reversal is required u/r 42 - 43 for pre agent reimbursement amount. Reimbursement as a pure agent is excluded from the value of supply. hence it shouldn't be disclosed as non taxable supply in R1/R3B. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If it is for FY 22-23, kindly amend R1 and rectify in R9 as well. - Non Taxable Supply vs Non GST Supply - Query Started By: - SAIRAM LBS Dated:- 25-6-2023 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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