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

Composite supply of electricity with maintenance attracts GST; independent recharge or reimbursement may be exempt under the cited notification.
Recovery of electricity charges from a lessee may be GSTable if characterised as a composite supply linked to maintenance; if treated as an independent supply it may be covered by the cited full and unconditional exemption. If the landlord pays the supplier and merely recovers costs from the tenant, the transaction may be a reimbursement, with GST treatment depending on the contract terms and factual circumstances.