In the December 2021 edition of the newsletter, we talk about the concept of a pure agent. Further, we also discuss when you need to pay GST on reimbursement of expenses. A business entity may enter into certain transactions, where one business entity pays for certain goods or services on behalf of another entity and later, it claims reimbursement of such expenditure from another entity. A question may arise whether GST is applicable on such transactions and input tax credit eligibility paid on purchases.
In this newsletter we discuss the following:
- Who is a Pure Agent?
- Whether GST is payable on reimbursements?
We take you through the facts of the case, provisions of the law and the ruling made by the concerned authority.
- Uttaranchal Cable Network vs Commissioner of C,CE &ST (STA No. 50294 of 2021) – New Delhi.
- M/s. Bharat Oman Refineries Ltd – AAR Madhya Pradesh (Order No. 02/2021)
Important Notifications and Circulars for the month of December 2021
Every newsletter shall include the calendar for the month. We have highlighted the GST due dates that you need to be aware of for your easy reference!