GST on reimbursement of air tickets

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... GST on reimbursement of air tickets
Query (Issue) Started By: - Rajesh Kumar Dated:- 15-6-2018 Last Reply Date:- 25-6-2018 Goods and Services Tax - GST
Got 6 Replies
GST
One of our consultant/director is submitting his air tickets for reimbursement with GST, air tickets already attract GST. is it correct? Reply By VaibhavKumar Jain: The Reply: Dear Rajesh, a. In case of consultant, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... say your consultant to issue tax invoice (as technical service) with ticket value plus GST @ 18%. This is because, your consultant is eligible for GST credit on air ticket. Based on tax invoice, you are also eligible for ITC charged by consultant. b. In case of director, reverse charge is applicable. Hence, if your director purchased the ticket, it might be possible that your GST No. is not ment .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ioned on the ticket and the air line shall not issue any tax invoice to you. In this situation, to establish "Pure Agent" will be difficult. Hence, you are liable to pay GST @18% under RCM on whole amount air ticket. The situation may be different, if the air ticket is booked on your name but initial payment made by director and subsequently take reimbursement. Here, the Pure Agent conc .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ept may be established and you may not pay GST under RCM on reimbursement. Gopabandhu Reply By Himansu Sekhar: The Reply: Sir, What is your issue? You will only reimburse the amount which includes all the taxes With regards Reply By Rajagopalan Ranganathan: The Reply: Sir, As per Sl. No. 8(iii) of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as amended " Transport of pa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssengers, with or without accompanied belongings, by air in economy class" is chargeable to gst @ 2.5%. Therefore air ticket attracts gst. Reply By KASTURI SETHI: The Reply: Dear Querist, Your thinking is correct. Reply By YAGAY and SUN: The Reply: Reimbursement of expenses attracts GST unless until conditions of pure agent fulfilled. Reply By Ganeshan Kalyani: The Reply: Though gst w .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as paid to airline company when reimbursement is sought it will again attract gst.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X