Articles Compiles list of 84 types of expenses on which we have discussed if GST is applicable or not and if applicable what will be rate of GST and Eligibility for Input Credit-

Sr. No Nature of Expense Rate of Tax Whether registered  supplier will levy tax Reverse Charge (If supply is unregistered) Whether Eligible for Input Credit
1 Salary, wages & bonus paid to employee 0% No No No
2 Electricity bill 0% No No No
3 Water Charges/ Plain Water 0% No No No
4 Bank Interest 0% No No No
5 Professional Tax 0% No No No
6 BMC Tax 0% No No No
7 Building / Property Tax 0% No No No
8 Rent Deposits 0% No No No
9 Other Deposits 0% No No No
10 Petrol / Diesel/ CNG/Kerosene Expenses (Motor Spirit) 0% No No No
11 Liquor Expenses 0% No No No
12 Registration Fees (ROF / ROC / RTO etc) 0% No No No
13 Bad Debt 0% No No No
14 Donation 0% No No No
15 Labour  Welfare Contribution to Government 0% No No No
16 Fine & Penalties 0% No No No
17 Conveyance Expense – Non AC Taxi, Auto, Bus, Train 0% No No No
18 Loading & Unloading in relation agricultural produce/ Hamali 0% No No No
19 Rent Paid for residential use 0% No No No
20 Godown Rent for agricultural produce 0% No No No
21 News paper & magazines 0% No No No
22 Remuneration to Director & partners 0% No No No
23 Conveyance Expense – Radio Taxi like OLA & UBER or other AC vehicle 5% Yes Yes No
24 Payment to Goods Transport Agency 5% No Yes Yes
25 Traveling in Train by AC or First class 5% Yes Yes No
26 Job Work / Labour Charges for textile yarn & textile fabric 5% Yes Yes Yes
27 Job Work / Labour Charges for diamond, jewellery & precious metal 5% Yes Yes Yes
28 Job Work / Labour Charges for printing of books, journals & periodicals 5% Yes Yes Yes
29 Food & Beverages Expense (Non AC restaurant) 12% Yes Yes No
30 Room Rent in a hotel, lodge  (Rs.1000 to 2500 per room per day 12% Yes Yes Yes
31 Fuel (Furnace Oil/LPG) 18% Yes Yes Yes
32 Sales Promotion/Business Promotion 18% Yes Yes Yes
33 Food & Beverages Expense (AC restaurant) 18% Yes Yes No
34 Mineral water 18% Yes Yes Yes
35 Truck/ Tempo Hire Charges 18% Yes Yes Yes
36 Club & Membership fees 18% Yes Yes No
37 Advertisement Charges / Hoarding / Magazine / News Papers / Media 18% Yes Yes Yes
38 AMC Charges 18% Yes Yes Yes
39 Bank Charges – Service charges recovered 18% Yes No Yes
40 Broker Fee & Charges 18% Yes Yes Yes
41 Cancellation Charges 18% Yes Yes Yes
42 Extended Warranty 18% Yes Yes Yes
43 House Keeping Charges 18% Yes Yes Yes
44 Insurance paid on goods & vechile 18% Yes Yes Yes
45 Health Insurance 18% Yes No No
46 Payment to advocate 18% No Yes Yes
47 Loading & Unloading – others/ Hamali 18% Yes Yes Yes
48 Training Expense 18% Yes Yes Yes
49 Payment to Post office for Speed post & parcel post 18% No Yes Yes
50 Postage and Courier Charges 18% Yes Yes Yes
51 Printing & Stationery (Flex Printing, Broad Printing, Notice Printing) 18% Yes Yes Yes
52 Recruitment Expenses 18% Yes Yes Yes
53 Commission Paid 18% Yes Yes Yes
54 Rent Paid for commercial use of premises 18% Yes Yes Yes
55 Godown Rent for commercial purpose 18% Yes Yes Yes
56 Repair and Maintenance – Building /  Electrical
/  P& M /  Others
18% Yes Yes Refer Note 1
57 Room Rent in a hotel, lodge  (Rs.2500 to 7500 per room per day 18% Yes Yes Yes
58 Payment for Sponsorship Services 18% Yes Yes No
59 Security Charges 18% Yes Yes Yes
60 Telephone, Mobile & internet Charges 18% Yes No Refer Note 2
61 Sundry Expenses 18% Yes Yes Yes
62 Job Work / Labour Charges for garment processing 18% Yes Yes Yes
63 Job Work / Labour Charges (Other) 18% Yes Yes Yes
64 Sitting Fees, Commission or any other payment made to director by company 18% Yes Yes Yes
65 Audit Fees, Account Writing , Professional Fees (other than Advocate) 18% Yes Yes Yes
66 Research & Development Expenses 18% Yes Yes Yes
67 Food & Beverages Expense (AC restaurant) 28% Yes Yes No
68 Wall Paint 28% Yes Yes No
69 Room Rent in a hotel, lodge Above Rs.7500/- 28% Yes Yes Yes
70 Traveling Expenses International 28% Yes Yes No
71 Amusement Park/ Theater Ticket 28% Yes Yes Yes
72 Cold drink 40% Yes Yes No
73 Repairs & maintenance Charges if it has not resulted into immovable property 18% / 28% Yes Yes Yes
74 Electrical Fittings 18% / 28% Yes Yes No
75 Staff Uniform Expenses 5% / 12% Yes Yes Yes
76 Packing material & Packing Charges 5%/ 12% 18% Yes Yes Yes
77 Plant & Machinery Actual Rate Yes Yes Refer Note 3
78 Furniture & Fixture Actual Rate Yes Yes Refer Note 3
79 Motor Car Actual Rate Yes Yes No
80 Building Actual Rate Yes Yes No
81 Office Equipment including Computer, Software & Hardware Actual Rate Yes Yes Refer Note 3
82 Free Gift given to staff (Exempt upto Rs.50000/- per staff p.a) Applicable Rate Yes Yes No
83 Free Gift given to staff (Above Rs.50000/- per staff p.a) Applicable Rate Yes Yes Yes
84 Diwali/ New year Gift purchased & debited to P & L Applicable Rate Yes Yes Yes

Notes:

1)  If repair  & maintenance expenses resulted into immovable property than input credit is not available.

2) If Telephone, Mobile & Internet bill is in the name of the company and address and place of business is mentioned then only one should claim the input credit.

3) Input credit is available fully. However if it is sold/disposed off/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is to be reversed for not used fully at the time of date of sale.

4) Input credit is available only if goods & services are used for business. If good or services are used for personal purpose then input credit is not available. If goods & services are used partially for personal use and partially for business use then input credit is available partly in proportion to business use.

5) Input credit is not available if outward supply of goods or services is exempt from payment of tax.

6)  As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate value of goods or services or both debited to Trading A/c or expenses debited to Profit & Loss A/c or purchase of any asset obtained from unregistered suppliers is less than Rs.5000/- in a day, then tax is not required to be paid for such inward supplies by the recipient for that particular day.

7)  Details of all purchase of goods or services debited to Trading A/c or purchase of any fixed asset are required to be submitted in GST return whether purchased from registered person or unregistered person or from composition dealer.

8) However, if any expense items are purchased from unregistered supplier & escape the payment of tax in view of Notification No.8/2017 dated 28/06/17 then same are not required to be submitted in GST return.

Author Bio

Qualification: CA in Job / Business
Company: Deepak Kumar & Company
Location: Faridabad, Haryana, IN
Member Since: 18 Sep 2017 | Total Posts: 5
I'M Deepak Kr Gupta From Faridabad-Haryana, My profession is Accounts, Banking Finance, Taxation (Direct-GST), ROC, Labour Law/Payroll, Audit & Other Compliance etc. View Full Profile

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43 responses to “RCM Expenses List under GST”

  1. vasu says:

    kindly inform whether an organisation can reimburse hotel bills of rs. 1200/- per day, but the hotel authorities have not charged any gst and there is no mention of hotel gst no in the bill and the bill is handwritten

  2. JAY says:

    THANKS FOR YOUR INFORMATION,

    I JUST WANT TO KNOW THE RCM MINIMUM AMOUNT.

    (MINIMUM AMOUNT FOR RCM PAYMENT)

  3. Arnav says:

    IS RCM IS APPLICABLE IF A PVT LTD COMPANY PAY COMMISSION TO THE BROKER ??

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