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

[Spudarjunan S]

Dear Sir,

In your present case, hope you have looked into the provisions of Rule 33 of CGST for Pure Agent concept vis-a-vis section 15(2)(b).

You may also take a stand (subject to litigation) what cannot be done directly cannot be done indirectly.

You may show such supplies under non-taxable supplies in returns as the levy has been postponed on diesel/petrol.

[Alkesh Jani]

Shri

In this regards my views are as under:-

As per Section 15(2)(b) or (c), the value is to be added in the rent for the purpose of levy of GST.

In your return you can show as receipt of Non-GST and also as supply of Non-GST for fuel.

AI Summary

Valuation of fuel charges: whether fuel reimbursements form part of taxable consideration affects GST return disclosure. The issue is whether fuel expenses borne by the supplier and deducted from agreed rent are excluded from taxable value or must be included as consideration. One viewpoint invokes the Pure Agent concept under Rule 33 and valuation principles; another suggests showing fuel reimbursements as non taxable in returns given the postponement of diesel and petrol levy. Taxpayers should assess whether the fuel element qualifies as a pure agent reimbursement or must be aggregated with rent, and may disclose such receipts as non GST in GSTR 1 and GSTR 3B, subject to potential challenge.