GST payable on Toll Reimbursements

Raju Choudhary

Staff member
GST payable on Toll Reimbursements: AAR

Premier Vigilance & Security Pvt Ltd vs. AAR WEST BENGAL
Case no. -23 of 2018

Fact of the Case

  1. In the instant case, the applicant Premier Vigilance & Security Pvt Ltd.
  2. The company provides security and transportation services to banks for ferrying cash in customized cash vans. The applicant is to pay GST under rule 33 from the value of supply.
  3. But the bank pays only actual toll & paying charges as per agreement. Bank does not authorize it as a “Pure Agent” or acknowledge toll as their own liability.
The decision of the Case

  1. AAR observed the applicant, being the owner of the vehicles, is the recipient of the service provisioned tolls. The applicant is the beneficiary and liable to pay the toll.
  2. The Authority noted that though there is no GST on toll when someone pays the toll and recovers it from a company or dealer as a part of services, such reimbursement will be a part of the value of supply and hence liable to GST.
  3. It was said that the Toll charges paid are not, therefore, to be excluded from the value of supply under Rule 33. GST shall, therefore, be payable at the applicable rate on the entire value of the supply, including toll charges paid