- Relevant provision of the GST Act & Rules
- Section 7(1) of CGST Act: Reimbursement is supply or not.
- Section-15- Value of supply
- Rule-33 of CGST Rule : Value of supply of services in case of pure agent.
- How to show in GSTR-1
- Sec 2(47) of CGST Exempted supply
- Sec 2(78) of Non-taxable supply
- Section 7(1) of CGST Supply: the expression “supply” includes–
a) all forms of supply of goods or services or both
b) made or agreed to be made
c) for a consideration (Sec,2(31) of CGST Act)
d) by a person (Section 2(84) of CGST Act)
e) in the course or furtherance of business; (Sec.2(17) of CGST Act )
- Section-15. (1) The value of a supply of goods or services or both shall be
a) the transaction value,
b) which is the price actually paid or payable
c) for the said supply of goods or services or both
d) where the supplier and the recipient of the supply are not related and
e) the price is the sole consideration for the supply.
- Further Again Section 15 (4) CGST Act says that-
a) where the value of the supply of goods or services or both cannot be determined under sub-section (1),
b) the same shall be determined in such manner as may be prescribed.( It means if the value of supply is not sole consideration then refer CGST rules)
- if all the following conditions are satisfied, namely,-
(i) the supplier acts as a pure agent of the recipient of the supply,
a. when he makes the payment to the third party on authorisation by such recipient;
(ii) the payment made by the pure agent on behalf of the recipient of supply
a. has been separately indicated in the invoice
b. issued by the pure agent to the recipient of service; and
(iii) the supplies procured by the pure agent
a. from the third party as a pure agent of the recipient of supply
b. are in addition to the services he supplies on his own account.