TaxTMI 
TaxTMI 
GST on Electricity charges
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....ST on Electricity charges<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 18-8-2020 Last Reply Date:- 19-8-2020 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>XYZ is a commercial Cooperative Society & has one electricity connection and hence one bill from BEST for the whole building. Individual members having sub meters only to assess their reading. Every month society is taki....
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....ng the actual reading from members sub meter for actual consumption of the electricity. Based on the same, electricity charges are recovered from the members. Is XYZ liable to pay GST on the electricity charges recovered from members even though it is only a reimbursement? Reply By KASTURI SETHI: The Reply: Dear Sir, There are contradictory decisions of two AARs. One in favour of the Govt. and....
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.... the other in favour of the assessee. You must be well aware of both. Hence no need to discuss both the decisions. However, in my view such electricity charges recovered from the members of society are not taxable. This cannot conform to the definition of 'supply' under CGST Act. The Society is not generating its power but distributing the electricity received from the BEST and this supply....
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.... is already tax paid. Moreover, such activity is of the nature of a pure agent. It is also presumed that installation of sub-meters has suffered tax. Hence no GST is leviable. In this context, also go through the Board's Flyer No. 42 dated 5.9.19 Reply By Rajendra Prasad: The Reply: Dear Sir Please clarify the following points also 1. The tenants are not the members of the Society who are....
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.... actually using the power. 2. The Society is collecting Power Charges slightly higher than the actual bill to recover common power charges .<br> Discussion Forum - Knowledge Sharing ....