GST on recovery of electricity charges

[KARAN VERMA]

Sir

In my factory premises, i have let out space on rent to third party. I have charged GST @ 18% on rent charges. Along with rent, i am also recovered electricity expense on basis of units consumed by tenant and deposit electricity bill to Govt.

Whether I am liable to charge GST on reimbursement of electricity expenses.

AI Summary

Debate on GST Applicability to Landlord's Reimbursement of Tenant Electricity Costs Under 'Pure Agent' Concept in Valuation Rules. A discussion on a forum revolves around whether GST should be applied to the reimbursement of electricity expenses by a landlord from a tenant. The landlord charges GST on rent but is uncertain about applying it to electricity costs. One participant argues that GST is not applicable as the landlord neither generates nor supplies electricity, referencing the 'pure agent' concept under Valuation Rules. Another cites an advance ruling suggesting GST is applicable. The conversation touches on the conditions of being a 'pure agent' and the specifics of invoicing and rent agreements, with varying interpretations presented.