Applicability of GST on Reimbursement of foreign expenditure to NRI, Goods and Services Tax - GST

[MANOHAR KALBURGI]

Dear Sir,

The Indian Pvt Ltd Co. pays reimbursement expenditure to the NRI who act as a Consultant and such reimbursement exp includes- Travel exp, gifts given to potential customer/s, internet charges, accommodation exp etc.,

These expenditures are paid in relevant foreign currency (USD).

Does these reimbursement expenses shall be liable for GST ?

Thanks in advance.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

If these expenditures occurred in non-taxable territory, that is, outside India then no gst is payable on such reimbursement of the expenditure.

[Shilpi Jain]

If those expenses are required for the consultant to provide his services to the Indian company then it would be included in the value of supply for the import of service and would be liable to gst.

[KASTURI SETHI]

It appears to me that there is a logical and legal force in the view of Madam Shilpi Jain. Rest depends upon full facts and circumstances of the issue and agreement between both persons i.e. Service Supplier and Service Receiver. Prima facie, there is every possibility of import of service.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.