Disclosure in GST return filing for Fuel charges

[Rajat Singhania]

Assessee is in the business of providing generator/DG sets on rent. The fuel used in the said power sources are borne by the assessee. In the invoice that he issues, the agreed rental amount is shown first from which the variable fuel expenses are deducted. The net value after deduction then becomes the taxable value for calculating GST. The total monthly rent(which includes the fuel charges, taxable value and GST) is then paid by the tenant after deducting TDS. Pl suggest :

1. If the said method of invoicing is correct. If so, how to show the fuel charges in GSTR-1 and 3B.

2. If not, pl suggest how to move forward with issuing of invoice and show its corresponding effect in GST returns

AI Summary

Generator Rental GST Query: Debate Over Fuel Charges and Taxable Value; Rule 33 and Section 15(2)(b)/(c) Discussed. An assessee providing generator rentals inquired about the correct method for invoicing and GST return filing regarding fuel charges. The current practice involves deducting variable fuel expenses from the rental amount to determine the taxable value for GST. Two responses were received. One suggested considering Rule 33 of CGST regarding the Pure Agent concept and showing supplies as non-taxable due to postponed levy on diesel/petrol. The other response advised adding fuel charges to the rent for GST purposes and showing them as non-GST supplies in returns, referencing Section 15(2)(b) or (c).