Reimbursment

[Bharat Cholleti]

Dear sir,

For housing societies reimbursement of electricity bill will attract GST. please advise.

AI Summary

Pure agent exemption: reimbursements may be outside GST if pure agent conditions and absence of supply are satisfied.
Reimbursement of electricity bills by housing societies is GST-exempt only if the payment falls outside the definition of consideration for a supply or meets the pure agent criteria; otherwise it is taxable, and advance rulings on this issue are inconsistent.