TaxTMI 
TaxTMI 
I have rented out my warehouse and I raise a rent invoice every month. I have paid the electricity bill myself, and now I am raising a reimbursement invoice for the same. Will GST be applicable on this reimbursement or not? Please explain with reasons
GST applicability on reimbursement invoice
02 May 2026 
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Pure agent treatment governs GST on electricity reimbursement in landlord-tenant rentals, while bundled recoveries remain taxable.
GST treatment of electricity reimbursement in a landlord-tenant arrangement depends on the contractual allocation of liability and whether the landlord qualifies as a pure agent. Where electricity charges are recovered strictly on actual basis and separately reflected in the invoice, the reimbursement may be excluded from the value of supply and not taxed separately. If the pure agent conditions are not met, the recovery forms part of the consideration for renting of immovable property and is taxable with the rent. Electricity supplied by a distribution utility remains exempt, but landlord reimbursements do not automatically get that exemption. (AI Summary)
GST treatment of electricity reimbursement in a landlord-tenant arrangement depends on the contractual allocation of liability and whether the landlord qualifies as a pure agent. Where electricity charges are recovered strictly on actual basis and separately reflected in the invoice, the reimbursement may be excluded from the value of supply and not taxed separately. If the pure agent conditions are not met, the recovery forms part of the consideration for renting of immovable property and is taxable with the rent. Electricity supplied by a distribution utility remains exempt, but landlord reimbursements do not automatically get that exemption. (AI Summary)