Question 33:  A C.A. firm registered person in Delhi audited in U.P. charged :-

(A) Professional fee

(B) Travelling Exp. reimbushment

(C) Reimburshment of boarding charges actual or on daily allowance basis

(D) Loading charges (Hotel exp. on actual)

please confirm whether IGST to be charged in B/C/D above.

2. A C.A. firm registered person Delhi gets a bill from another C.A. firm (unregisered person)

Does registered person has to pay GST under RCM

Answer 1. The expenses done by Chartered Accountant are incidental for providing of service and it should be added in the bill of Chartered Accountant as per Section- 15 of CGST Act. It should not be confused with Rule 33, where the expense as pure agent are not to be included in the value. Relevant portion of Rule 33 is as follows:
the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,-

(i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorisation by such recipient;
(ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and
(iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account.
In present case the expenses will be booked in the accounts of the CA.
You can take example of ROC fees. The ROC fees if paid by CA is covered under category of expenses as pure agent, then the same will not be included in the value of supply.

2. The same is covered under Reverse Charge Mechanism as per section 9(4) of CGST Act but Vide Notification No. 38/2017-Central Tax (Rate) amended by Notification No. 10/2018-Central Tax (Rate) ,Dt.23-03-2018, the exemption relating to reverse charge on supplies from unregistered person u/s 9(4) is extended till 30.06.2018. (reply dt. 05/20/2018)