banner_ad

GST Applicability on recovery of electricity charges

Rate / HSN codes 1493 views 2 replies

Dear Members ,

I have three queries relating to the same transaction.

Background : We are a  logistics & warehousing company providing the services for the same .

There are multiple customers/clients in the warehouses .

The electricity bill for the month is pro-rated and recovered from each customer based on the usage .

i)The HSN Code 998311 .Is this correct.If not ,is there an issue if GST is not charged

ii)Is  the recovery of electricity subject to GST

iii)A few customers are charged @ 1/sq ft consolidated for electricity ,generator back up diesel etc .Is this subject to GST.

Would appreciate if response to the above queries can be given.

Thanks & regards ,

Varun Monga

Replies (2)
Gst once paid cannot be recovered.

GST is not attract in Electricity. There are few scenario.

1. In case you charge only Electricity Bill - Treat it as reimbursement as you only collect from party and paid to Electricity Department, since you are not an electricity provider its just reimbursement. GST not attract.

2. In case you provide bundle of services like electricity, generator, backup diesel etc. then treat it as rent for mixed/ bundle supply and attract GST.  Pay 18% GST as rent for above. 

 

  


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details