reiumbursment on supply of diesel

[yashpal madan]

We are providing Generator Set to banks on monthy rental basis.some banks are paying fix amount including supply of diesel,maintenence & operation of set and we charge GST @18% on fix amount.
Some banks are paying rent of generator @10000 p.m which include operation & maintenence plus diesel consumption @ 8 liter per hour at market diesel rates as per running of Generatror depending on power supply situation.
We generate two bills one for rent of generator and second for reimbursement of diesel.
On rent bill we charged 18%GST and we are not charging GST on reimbursement of diesel as petrolieum product are not in GST.
Please suggest me this is right or we should charge GST on reimbursement of diesel bill as bank are not ready to pay GST on diesel

AI Summary

Generator Rental Companies Must Include Diesel Costs in GST as per Section 15(2)(c) of CGST Act, 2017. A company provides generator sets to banks on a rental basis, with some banks paying a fixed amount that includes diesel, maintenance, and operation, while others pay separately for diesel consumption. The company charges 18% GST on the rental but not on diesel reimbursement, arguing that petroleum products are not under GST. However, experts in the forum advise that diesel costs should be treated as part of the taxable supply and GST should be charged, as per Section 15(2)(c) of the CGST Act, 2017. The concept of a 'pure agent' does not apply in this scenario.