Reimbursement among related entities- Supply or not. Beware of potential consequences
What we may tend to overlook would boom with its consequence in an untimely manner. In this context over this article, lets understand various dimensions that we should be mindful of with respect to how to treat re-imbursements under GST. Whether is this a supply or not? For any transactions to be regarded as "Supply" under sec 7 of CGST Act 2017, we have to satisfy that Its done for consideration Its in the course or furtherance of business Exception to this definition are for Import of services, consideration alone matters, not essentially the business test to be satisfied as per sec 7(b) Also for the notified transactions as per Schedule I, consideration test is not relevant as per sec 7(c). Transactions should not forming part of Schedule III Lets build a perspective on these components making a transaction as " Supply" under GST. Sec 2 (17) “business” includes–– (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other simila...