Levy of GST — the applicant, seeking an advance ruling 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.

Held that— As per Rule 33 of GST Valuation Rules, 2017 the expenditure or cost incurred by a supplier, as a pure agent of the recipient of the supply shall be excluded from the value of supply. However, such exclusion of expenditure incurred as a pure agent is possible where the conditions are required to be considered as a pure agent and further conditions stipulated in the rules are satisfied by the supplier.

we accept the contention of the jurisdictional officer that the applicant has failed to establish themselves as a pure agent as defined under the GST Valuation Rules and therefore the expenditure or cost incurred by the applicant and subsequent reimbursement thereof cannot be excluded from the value of supply.

As the reimbursement of the expenses constitute composite supply GST would be payable at a rate as applicable to the principal supply.—E-Square Leisure Pvt. Ltd., In Re… [2018] 07 TAXLOK.COM 114 (AAR-Maharashtra)