In re E-Square Leisure Pvt Ltd (GST AAR Maharashtra)
Question :- Whether GST is levied on the reimbursement of expenses from the lessee by the lessor at actuals?
Answer :- Answered is in affirmative.
Question :- In case GST is levied, what is the rate of GST applicable to said reimbursement of expenses ?
Answer : As the reimbursement of the expenses constitute composite supply GST would be payable at a rate as applicable to the principal supply.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by E-SQUARE LEISURE PVT LTD., the applicant, seeking an in respect of the following questions :
1. Whether GST is levied on the reimbursement of expenses from the lessee by the lessor at actuals?
2- In case GST is levied what is the rate of GST applicable to said reimbursement of expenses.
2. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
3.1 STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON
WHICH THE ADVANCE RULING IS REQUIRED
Comments are closed.