TaxTMI 
TaxTMI 
Sir
I m generating electricity through solar power plant, 50% is used by me and remaining 50% sold to tenant
whether gst applicable on sale of power to tenant.
sale of electricity
03 Mar 2020 
4 Replies 
26607 Views Asked by
Electricity supply exemption: sale to tenant by non-utility is taxable unless treated as ancillary to renting, seek ruling.
Electricity is generally an exempt commodity, but transmission or distribution performed by entities other than designated utilities is taxable; therefore, supply of electrical energy by a generator to a tenant is likely taxable for the transmission/distribution component unless the transaction is held to be a composite supply with an exempt principal supply-an advance ruling is recommended where classification is disputed. (AI Summary)
Electricity is generally an exempt commodity, but transmission or distribution performed by entities other than designated utilities is taxable; therefore, supply of electrical energy by a generator to a tenant is likely taxable for the transmission/distribution component unless the transaction is held to be a composite supply with an exempt principal supply-an advance ruling is recommended where classification is disputed. (AI Summary)