Recovery of Electricity charges from supplier

[Priyesh Mamnani]

Supplier A is providing service to Customer B at customer's place. Supplier is using Customer electricity for which customer makes recovery for the same. So whether recovery of electricity charges by customer from supplier will be liable to GST? What will be the impact?

AI Summary

Debate on GST Applicability for Electricity Charge Recovery Under Section 15(2)(b) of the CGST Act. A query was raised about whether the recovery of electricity charges by a customer from a supplier using the customer's electricity is subject to GST. The discussion highlighted that GST applies to the supply of goods or services. One view is that the electricity charge recovery is not a supply and thus not liable to GST. However, there is a possibility that the tax department may argue these charges should be included in the value of the service provided by the supplier, per Section 15(2)(b) of the CGST Act. Various opinions and interpretations were shared, with references to relevant GST notifications and exemptions.