GST ON GENERATOR RUNNING AND ELECTRICITY EXPENSES RECOVERED BY BUILDER

[ROHIT GOEL]

IN THE CASE OF BUILDERS, WHERE A COMMERCIAL IS DEVELOPED - PARTLY SOLD AND PARTLY LET OUT. A COMMON GENERATOR IS INSTALLED IN BUILDER BOOKS AND COST OF RUNNING LIKE DIESEL AND REPAIR IS MET BY BUILDER AND THE MONTHLY COST IS SHARED AMONGST THE DIFFERENT SHOP OWNERS AND BUILDERS ACCORDING TO AREA OCCUPIED. WHETHER SUBJECT TO GST. WHETHER EXCESS RECOVERED OR DEFICIT HAVE ANY IMPACT ON GST APPLICABILITY

SIMILARLY- GST ON ELECTRIC BILLS REIMBURSEMENT WHERE A COMMON CONNECTION IS OBTAINED FROM ELECTRICITY BOARD.

[Himansu Sekhar]

Any thing billed will be added to the transaction value and subject to gst

[Ganeshan Kalyani]

If recovery of electricity bill is exact then GST is not applicable.

AI Summary

GST on recovered electricity and generator charges depends on whether amounts form part of the transaction value or are exact reimbursements. Whether GST applies to builder recoveries for a common generator and shared electricity hinges on classification as part of the taxable transaction value or as exact reimbursement. One reply asserts billed amounts are included in transaction value and subject to GST; another asserts exact pass through recoveries of electricity bills are not subject to GST.