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On which expenses GST is applicable?

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On which expenses GST is applicable?

There are two types of expenses that may get reimbursed to the supplier under GST: Incidental expenses incurred by the supplier in the course of supply. This could be in the form of commission, packing, travelling expenses, etc., and form a part of the supply value.

Is reverse charge applicable on advertisement?

As per Section 5(3) of the IGST Act, 2017 reverse charge mechanism is applicable on notified goods and services. If Mr A procures advertisement service from M/s. HIJ, a person located in non-taxable territory, then Mr A would be required to discharge the GST liability to the Government as a recipient of service.

Which expenses are covered under reverse charge?

What are the Profit & Loss items which might attract GST under RCM

  • Rent.
  • Commission payments.
  • Printing and stationery.
  • Repairs and Maintenance.
  • Office Maintenance.
  • Vehicle maintenance.
  • Computer maintenance.
  • Legal Fees.
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Is reverse charge applicable on professional fees?

2017, for legal services supplied by an individual advocate, a senior advocate or firm of advocates to a business entity located in taxable territory, the tax under reverse charge shall be paid by the recipient of services i.e., the business entity. Legal services are taxable @18\% under SAC 9982.

Is GST applicable on advertisement?

The advertising agency buys the space on behalf of the advertiser but charges commission for the same. In such a case, GST would be levied at 5\% for advertisement in print media or 18\% for advertisement in digital media. The advertising agency would levy GST at the rate of 18\% on the commission charges.

Is GST required for Google ads?

GST on Google Adwords Advertisement is applicable @ 18\%. This is applicable irrespective of whether you are registered with the Google entity registered in India or with the Google entity registered outside India.

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How do I reverse charge in Gstr-3B?

To create, save, pay taxes and file Form GSTR-3B return, perform the following steps:

  1. Login and Navigate to Form GSTR-3B – Monthly Return page.
  2. Enter Details in Section – 3.1 Tax on outward and reverse charge inward supplies.
  3. Enter Details in Section – 3.2 Inter-state supplies.
  4. Enter ITC Details in Section – 4.