GST on Electricity Charges - Reg

[kiran kumar]

Dear Sir,

We have Two type of business set up in same place of business. Recently we given one type of business for leasing.

We are receiving the Electricity bill for Entire two Business from APSEB and We are paying the monthly Bill through online.

For the same we have separate meters to identify the Electricity charges for each type of Business.

As per lease agreement Actual electrical charges based on Units consumption need to be collected from Leasing vendor.

We are raising the debit note to Leasing vendor with out GST

Please advise the GST compliance in this

Thanks&Regards,

Kiran Kumar

AI Summary

GST Applicability on Electricity Charges in Leased Business Setup: Impact of Composite Supply and Reimbursement Rules A business owner inquired about GST compliance on electricity charges for a leased business setup. They receive a single electricity bill for two businesses and have separate meters to allocate charges. They issue a debit note to the leasing vendor without GST. Replies indicated that if electricity charges are part of maintenance services, GST applies due to composite supply rules. However, if treated as an independent supply, GST is exempt under certain conditions. It was noted that the owner is not supplying electricity but seeking reimbursement, which may affect GST applicability based on specific case facts.