Do we need to pay GST on Reverse Charge Mechanism for the following :
1. Reimbursement of Fooding expenses to employees if yes is ITC available
2. Food supplied to Employees in factory canteen if yes is ITC available
3. Tea Coffee sugar etc items purchased from Unregistered dealer if yes is ITC available
4. Tea Coffee sugar etc items purchased from Registered dealer is ITC available.
5. Reimbursement of Travelling expenses for business tour (Fooding + Accomodation + To & From Fare + Local Conveyance + Misc other expenses). Supply / services taken from both Registered dealer and unregistered dealers. if yes is ITC available
6. Miscellaneous Pooja expenses incurred. if yes is ITC available
7. Expenses incurred on fooding / accommodation / entertainment of customers.
8. Gift to employees if yes is ITC available
9. Reimbursement of Telephone Expenses to employees. if yes is ITC available
If any supplier has charged GST in Invoice but not mentioned our GST number and the item is ineligible for input tax credit. The GST paid will be debited to which accounting head in P&L account.
1. Reimbursement of Fooding expenses to employees if yes is ITC available
If food is part of employment contract then GST is not chargeable. This is debatable, since food reimbursement is not business activity by employee so RCM is not chargeable.
2. Food supplied to Employees in factory canteen if yes is ITC available
Yes GST is chargeable under RCM if caterer is not registered.
3. Tea Coffee sugar etc items purchased from Unregistered dealer if yes is ITC available
ITC is not available, GST under RCM is to be paid considering the daily limit of 5000 from aggregate supplies.
4. Tea Coffee sugar etc items purchased from Registered dealer is ITC available.
Input is not available on food and beverages. So whether purchased from registered or unregistered it does not make any difference.
5. Reimbursement of Travelling expenses for business tour (Fooding + Accomodation + To & From Fare + Local Conveyance + Misc other expenses). Supply / services taken from both Registered dealer and unregistered dealers. if yes is ITC available
No GST to be charged on employees reimbursements. Input available if GSTIN details uploaded by service providers (Hotels).
6. Miscellaneous Pooja expenses incurred. if yes is ITC available
No
7. Expenses incurred on fooding / accommodation / entertainment of customers.
Yes available but not for food.
8. Gift to employees if yes is ITC available
No, if GST is not charged on gifts. Yes, if GST charged. (Limit per employee is 50,000 in a year.)
9. Reimbursement of Telephone Expenses to employees. if yes is ITC available
You need not to charge GST under RCM for this. If it is part of CTC, and telephone company is uploading your GSTIN then input is available.
If GST input is not available then expense it. If on direct expense then add it to cost of expense.
If you are a company then best will be to add it to particular expense directly.
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