reiumbursment on supply of diesel
Query (Issue) Started By: – yashpal madan Dated:- 2-5-2018 Last Reply Date:- 6-5-2018 Goods and Services Tax – GST
Got 9 Replies
GST
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 supply 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 reimbur
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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 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 taxable under GST Regime.
Reply By Alkesh Jani:
The Reply:
Dear all Experts,
Can we review on the
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lowing 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 supply 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.
I
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