Question ID : 40603

GST on Outward supplies transportation

Company A is supplying Chemicals to Company B. As per PO Terms Company A shall arrange for Transportation & insurance on outward supplies and get the same reimbursed by B at actuals, for which Company A is raising two separate invoices , one is for goods with applicable GST And another invoice for Reimbursement of Expenses without charging GST,(since the Company is of the view that the services qualify as Pure Agent), further Company A is also paying GST on outward transportation under RCM basis and not availing any Input Tax Credit. Query: 1 Whether the company A is liable to Collect GST on reimbursement of expenses (viz. Freight and Insurance)? Query 2. Whether the company A is eligible to take Input Tax credit on GST Paid under RCM basis for outward transportation?

posted by SUDHAKAR on Mar 9 2020 12:00AM