Pure Agent not liable to pay GST on reimbursement of compensation paid to farmers & land owners

In re Sree Subha Sales (GST AAR Karnataka) Pure Agent not liable to pay GST on reimbursement of compensation amount paid to farmers and land owners The AAR, Karnataka in the matter of M/s Sree Subha Sales [Advance Ruling No. KAR ADRG39/2022 dated October 27, 2022] ruled that, if the assessee qualifies to be a pure agent then reimbursement of tree cut compensation paid to farmers and land owners during the course of execution of work is not chargeable to Goods and Services Tax (“GST”). Facts: M/s Sree Subha Sales (“the Applicant”) execute government projects on tender basis and their ma...