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Pure Agent not liable to pay GST on reimbursement of compensation paid to farmers & land owners

Pure Agent not liable to pay GST on reimbursement of compensation amount paid to farmers and land owners The AAR, Karnataka in the matter of M/s Sree Subha Sales [Advance Ruling No. KAR ADRG39/2022 dated October 27, 2022] ruled that, if the assessee qualifies to be a pure agent then reimbursement of tree cut compensation paid to farmers and land owners during the course of execution of work is not chargeable to Goods and Services Tax (“GST”).