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TMI Blogreiumbursment on supply of dieselX X X X Extracts X X X X X X X X Extracts X X X X ..... We are providing Generator Set to banks on monthy rental basis.some banks are paying fix amount including supply of diesel,maintenence operation of set and we charge GST @18% on fix amount. Some banks are paying rent of generator @10000 p.m which include operation maintenence plus diesel consumption @ 8 liter per hour at market diesel rates as per running of Generatror depending on power suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y situation. We generate two bills one for rent of generator and second for reimbursement of diesel. On rent bill we charged 18%GST and we are not charging GST on reimbursement of diesel as petrolieum product are not in GST. Please suggest me this is right or we should charge GST on reimbursement of diesel bill as bank are not ready to pay GST on diesel - Reply By KASTURI SETHI - The Reply = In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the situation explained by you, reimbursement is an expense against taxable supply. It is taxable and covered under the definition of Section 15 (2)(c) of CGST ACT, 2017. - Reply By KASTURI SETHI - The Reply = You cannot take the ground that diesel is exempted. Treat it as an expense against taxable supply and expense incurred on diesel will form part of taxable value of Supply. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Himansu Sekhar - The Reply = First thing you are not a dealer of diesel and not engaged in sale of fuels. You are providing a service. This expenditure on account of Diesel charges is indispensable and inevitably incurred to provide taxable service and hence, essentially forms part of value of taxable service. If tomorrow, diesel comes under GST, and the rate of GST if happens to be more, you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will not be asked to pay the GST applicable on Diesel. You will be asked to pay GST treating it as a composite supply, The main supply will be the essence of the entire composite supply. Kasturi sir is correct. - Reply By Himansu Sekhar - The Reply = It is better to ask for a clarification to the Deptt. - Reply By YAGAY ANDSUN - The Reply = Providing of tangible goods for rent/lease is taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le under GST Regime. - Reply By Alkesh Jani - The Reply = Dear all Experts, Can we review on the basis of pure agent in second scenario. Thanks in with regards, - Reply By Himansu Sekhar - The Reply = A pure agent means a person who: (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or services or both (b) neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply (c) does not use for his own interest such goods or services so procured (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount The supplier would have to satisfy the following conditions (in addition to the condition required to be satisfied to be considered as a pure agent)for exclusion from value: (i) The supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party on authorization by such recipient (ii) The payment made by the pure agent on behalf of the recipient of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply has been separately indicated in the invoice issued by the pure agent to the recipient of service (iii) The supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account In case the conditions are not satisfied, such expenditure incurred shall be included in the value of supply under GST. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appears the supply of diesel do not satisfy the above criteria - Reply By KASTURI SETHI - The Reply = The concept of '''pute agent is not applicable here. - Reply By YAGAY and SUN - The Reply = Yes, Pure Agent is a Different Animal in GST Regime. - reiumbursment on supply of diesel - Query Started By: - yashpal madan Dated:- 2-5-2018 Goods and Services Tax - GST - Got ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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