Pure Agent Rules under GST: How to Invoice Reimbursable Expenses
Learn the strict pure agent conditions required to exclude out-of-pocket expenses from your taxable GST turnover.
Pure Agent Rules
To avoid paying GST on expenses paid on behalf of a client, you must satisfy the "pure agent" criteria under GST rules. You must invoice the exact amount without markups, act under explicit authorization, and separate these reimbursements on the face of the tax invoice.
The Pure Agent Conditions
You must not claim ownership over the services purchased. The payment made to the third party should be a distinct reimbursement line item on your client invoice, backed by copy receipts from the actual vendor.
CA Amit Sharma
Verified Advisory LeadAmit is a Chartered Accountant (ICAI membership #409214) and FEMA compliance advisor with over 8 years of experience advising technology startups, digital marketing agencies, and remote professionals on zero-rated GST exports, DTAA declarations, and RBI inward remittance audits.
Disclaimer: The information provided above is for educational purposes only and does not constitute formal legal or financial advice. Please verify details using official circulars issued by the Central Board of Indirect Taxes & Customs (CBIC) and RBI.