TaxTMI 
TaxTMI 
XYZ is a commercial Cooperative Society & has one electricity connection and hence one bill from BEST for the whole building. Individual members having sub meters only to assess their reading. Every month society is taking the actual reading from members sub meter for actual consumption of the electricity. Based on the same, electricity charges are recovered from the members. Is XYZ liable to pay GST on the electricity charges recovered from members even though it is only a reimbursement?
GST on Electricity charges
18 Aug 2020 
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GST on electricity recovery: reimbursements by a society may be non supply when acting as a pure agent, subject to conditions.
Recoveries by a cooperative society of electricity charges apportioned from a single billed supply are argued not to constitute supply where the society only distributes an already taxed supply and functions as a pure agent; sub meter installation is assumed to have suffered tax, and the position is informed by conflicting advance rulings and Board Flyer No. 42. (AI Summary)
Recoveries by a cooperative society of electricity charges apportioned from a single billed supply are argued not to constitute supply where the society only distributes an already taxed supply and functions as a pure agent; sub meter installation is assumed to have suffered tax, and the position is informed by conflicting advance rulings and Board Flyer No. 42. (AI Summary)