Navigating the GST implications of expenses paid on behalf of clients, partners, or group entities is a complex and high-risk area for businesses. Misclassifying these transactions—as either reimbursements, disbursements, or recharged expenses—can lead to significant compliance errors, missed input tax credits, costly penalties, and reputational damage.
This practical, interactive workshop is designed to provide finance professionals, accountants, and business owners with the clarity and confidence to manage these transactions correctly. Through real-world scenarios and expert guidance, you will gain a robust framework for applying GST rules accurately and safeguarding your business.
A Highlight of Key Areas:
Introduction to GST Treatment for Expense Recovery
- Overview of key concepts
- Importance of correctly classifying expense recovery
Key Differences Between Reimbursement and Disbursement
- Definitions and GST implications
- How to determine whether an expense is a reimbursement or disbursement
Principal vs. Agent Relationship
- Understanding when you are acting as a principal or an agent
- Key indicators to determine the relationship
- Impact on GST treatment
Recovery of Expenses in Different Scenarios
- Ancillary to a Primary Supply
- When expense recovery is part of a main supply
- GST treatment and documentation requirements
- Separate and Not Ancillary to Any Primary Supply
- Cases where expense recovery is an independent transaction
- GST implications
Mark-Up vs. Cost Recovery
- Does adding a mark-up change the GST treatment?
- Comparison between recovering expenses at cost vs. with a profit margin
Common Pitfalls & Compliance Considerations
- Mistakes to avoid in GST reporting
- Documentation and record-keeping best practices
Q&A & Case Studies
- Practical examples to reinforce learning
- Interactive discussion on real-world scenarios