TaxTMI 
TaxTMI 
SAC Code for Electricity Supply
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....AC Code for Electricity Supply<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 4-4-2019 Last Reply Date:- 9-4-2019 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>As per Kolkata High Court decision in the case of Srijan Realty (P) Ltd., = 2019 (3) TMI 821 - CALCUTTA HIGH COURT the landlord is liable to pay service tax on electricity charges collected from tenants based on s....
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....ub-meters installed. I presume this decision is hold good under GST also. If yes, what is SAC to be mentioned. I understand the Supreme Court has given finding that the electricity can be classified as a goods. Does it mean we should quote HSN not SAC. Reply By KASTURI SETHI: The Reply: The decision cited by you does not hold good under GST. Electricity is a goods. There are two aspects : one is....
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.... manufacture (generation) of electricity and other is supply (transmission and distribution) of electricity. SAC (Service Accounting Code) was relevant in Service Tax period. It is not relevant now. Even the word HSN is not legally correct. Correct way is Chapter/Heading Sub-heading Tariff Code : in your example it is 998631 (Support services to electricity transmission and distribution services).....
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.... In my view, this issue is fit for filing an application with the jurisdictional Advance Ruling Authority. Reply By Ganeshan Kalyani: The Reply: Advance Ruling is an optional and better way to seek clarity on an issue. However it you have to think before you leep. Because advance ruling an mandate to you. That is you have to follow that order. You cannot take any other stand. Reply By KASTURI ....
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....SETHI: The Reply: Break-up of supply of electricity: 998631 99 : Denotes Chapter No. 86 :Denotes Heading No. 31 : Denotes Sub-heading No. These are to be mentioned on invoices as prescribed. In service mostly 4 digits are used which indicate Chapter and Heading. Chapters No. from 1 to 98 A of GST Tariff are meant for all goods.. Chapter No. 99 is meant for all services Reply By KASTURI SET....
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....HI: The Reply: On 5 or 6 .4.2019 AAR-Maharashtra has held that GST is applicable on electricity and water charges collected on actual basis from tenant along with rent. Applicant E-Square Leisure (P) Ltd. Reply By KASTURI SETHI: The Reply: I am of the view that this decision of AAR Maharashtra most likely will be reversed by the AAAR or Central Advance Ruling Authority. Such electricity and wa....
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....ter charges cannot fall in the definition of 'consideration'.<br> Discussion Forum - Knowledge Sharing ....