TaxTMI 
TaxTMI 
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?
Recovery of Electricity charges from supplier
17 Mar 2021 
16 Replies 
4601 Views Asked by
Taxability of electricity charge recovery hinges on whether the payment is a supply or a reimbursement affecting GST valuation.
Whether recovery of electricity charges by a customer from a supplier is subject to GST depends on whether the recovery is a supply or a mere reimbursement, the contractual terms and accounting treatment, and valuation rules that include amounts the supplier is liable to pay but which the recipient has incurred and not included in the price. (AI Summary)
Whether recovery of electricity charges by a customer from a supplier is subject to GST depends on whether the recovery is a supply or a mere reimbursement, the contractual terms and accounting treatment, and valuation rules that include amounts the supplier is liable to pay but which the recipient has incurred and not included in the price. (AI Summary)