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

GST on electricity reimbursements depends on pure agent status and invoice and lease documentation.
Recovery of electricity charges from a tenant alongside rent depends on whether the landlord qualifies as a pure agent under the valuation rules, with key factual determinants being who holds the electricity bill/meter, whether pure agent conditions (including separate invoicing) are met, and what the lease terms provide; an advance ruling was cited where GST applied because pure agent status was not established.