Electricity charges recovered from Tenant-GST

[VIGNESH]

Sir commercial property let out and seperate submeters are provided to tenant , but owner collects EB charges @ ₹ 12/- where as Govt charges ₹ 8/-, whether the amount of ₹ 12/- taxable or ₹ 4/- (12-8) taxable?

AI Summary

Electricity Charges by Landlord to Tenant: GST Applies on Markup, Rule 33 of CGST Rules 2017 Explained. A discussion on a forum addressed the issue of whether electricity charges collected by a landlord from a tenant are subject to GST. The landlord charges 12 per unit while the government rate is 8. The consensus, referencing various rulings and Rule 33 of the CGST Rules, 2017, is that if the landlord acts as a pure agent, only the actual amount (8) is not taxable. However, if there's a markup, GST applies to the full 12. The forum also discussed relevant case laws and emphasized the importance of specific agreement terms to determine tax liability.