TaxTMI 
TaxTMI 
Sir/madam
Is GST levied on common expenses shared among two companies at same premises. This includes salary, electricity, internet, professional charges etc.
Regards
Amresh Kumar
GST on common expenses
28 Sep 2020 
4 Replies 
6030 Views Asked by
GST on recovered common expenses: recoveries attract GST and input tax credit may be claimed on a proportionate basis.
Recoveries of common expenses between distinct entities-such as salary, electricity, telephone and internet-are treated as taxable consideration and GST must be charged; input tax credit on GST paid for those common expenses may be claimed, with telecom and internet credits claimable proportionately to the recoveries and full credit available where the recipient's supplies are taxable. (AI Summary)
Recoveries of common expenses between distinct entities-such as salary, electricity, telephone and internet-are treated as taxable consideration and GST must be charged; input tax credit on GST paid for those common expenses may be claimed, with telecom and internet credits claimable proportionately to the recoveries and full credit available where the recipient's supplies are taxable. (AI Summary)