We have a manufacturing company and some of contractors are working in our factory. and for running the work ,we are providing to contractors an electricity as chargeable basic to contractor account on monthly basis without charging GST due to electricity is 'NON GST' product.
Whether GST is applicable on electricity which is provided to contractors. Kindly advise.
Regards
Sanjoy Das
Manufacturers Supplying Electricity to Contractors Must Apply GST; Not Exempt as Utility Service A manufacturing company provides electricity to contractors working in its factory, charging them monthly without applying GST, as electricity is considered a 'NON GST' product. A discussion ensues about whether GST should be applied to such electricity charges. It is clarified that electricity transmission or distribution by a utility is exempt from GST, but not when provided by entities that do not qualify as utilities. Therefore, the electricity supplied by the manufacturer to contractors is a composite supply and subject to GST. The discussion references various rulings and advises consulting a tax professional for contract examination. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
