GST applicability on Electricity

[Murari Agrawal]

We have a high tension electricity connection in our premises, where no other Electric connection can be availed and if any one needs a separate connection, he will have to get connection from us via a sub-meter upon payment as per meter reading. My query is whether GST will be leviable on such payment. Thanks

[Murari Agrawal]

Dear Experts kindly give your valued opinion. Thanks

[Brijesh Verma]

NO, unless there's a mark-up

[Amit Agrawal]

Supply of 'Electrical energy' is exempted from gst as per Serial No. 104 of Notification No. 2/2017-Central Tax (Rate) as amended till date.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

GST exemption on electrical energy: no tax on pass-through sub meter charges unless a mark-up is added. Supply of electrical energy is exempt from GST under the applicable rate notification, so payments that simply recover electricity cost via sub metering are not leviable to GST. If the connection holder adds a mark up or margin over the billed electricity, that mark up may amount to a taxable supply and attract GST.