GST on Fuel, Electricity and Water reimbursement

Rules 883 views 3 replies

Dear all,

The Facility Management company in my apartment has charged us GST @ 18% on the expenses for Diesel purchase, Water charges (to water tanker vendor) and BESCOM (Electricity bill).Since they pay these amounts on our behalf, this shows up as reimbursement from owners to them in the costing sheet.

Is this a valid and legal charge they're levying? If yes, could you please explain the rationale?

Replies (3)
Dear
Can plz clarify , what is 'Facility Management Company " ????

In my apartment the Facility Management Company facilitates all services to manage the apartment like housekeeping, security, STP etc. We pay them monthly maintenance for which they charge us service charge + GST. Hope that clarifies.

Yes GST applicable on expenses reimburse by Management Co.

In term of Section 15(2)(c) : All Reimbursement of all expenses that incurred by Supplier in connection with supply of his services & charged to Receptient is Taxable in GST.

Now question arises that Few Expenses ie electricity & water , Diesel Expenses are exempted in GST ,so no GST must be applicable on the same . .... but As per Section 8 it covers under composit supply , the rate for Principal supply is applicable (18% Maintenance)



Note : Yes can generate a separate bill for exempted supply , no GST is applicable therein.

Can also refer the AAR Maharashtra which held
GST applicable on Electricity and Water Charges collected from Tenant along with Rent- (AAR – MAHARASHTRA)


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