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GST is applicable on the reimbursement of expenses and on the management fees charged by us for managing the job outsourced to us.

Levy of GST — Applicant engaged in to Management consultancy services to ship owners. Applicant had applied for GST registration, however, since its turnover was not exceeding the exemption limit, Applicant applied for cancellation of GST registration. Thereafter, it offered an outsourcing work of managing the shipping operations of Hong Kong based shipping company, which is involved in worldwide shipping consultancy. The Authority Ruled; GST will be applicable on the management fees charged by Applicant to the Company for managing the job outsourced to Applicant. — Maansmarine Cargo International LIP, In Re… [2019] 15 TAXLOK.COM 099 (AAR-Maharashtra)

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