My client will charge a fixed amount as an reimbursement showing separately in in the bill. Do we need to apply gst on that amount
Yes, you need to charge GST on expense reimbursements unless expenses are incurred as a pure agent.
As per valuation provisions under GST, any expense incurred in providing a supply has to be included in value of supply.
You did not mention nature of expense, so I will understand that these are normal expenses such as travel, conveyance etc.
Now understand with an example what is not taxable.
As a chartered accountant if I pay some taxes on behalf of my client, and claim reimbursement, I do not have to charge GST on this as a I did it as a pure agent and did not earn any profit on this.
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