TAX CHARGE ON ELECTRICITY BILL

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157 Points Posted on 17 June 2020
Suppose, You are the Office Building owner, you gave every floor on rent.
when a single Electricity bill of whole building comes, then its divided into all companies(tenants). So here, owner should charge GST on Divided Bill amount & raise tax invoice or Not. ?
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On 17 June 2020 at 01:10 Report
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This discussion explores whether office building owners should charge GST on electricity bills recharged to tenants. While some suggest a debit note is sufficient, others raise tax invoices. The consensus leans towards issuing a debit note without GST, especially if charges are based on actual consumption or if treated as reimbursement of expenses under the pure agent concept. Reference is made to Section 15 of the CGST Act and an advance ruling, though the applicability of the latter is limited.

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1238 Points Posted on 17 June 2020
No need to raise tax invoices. Just raise Debit Note against EB bill and mention detail narration Reimbursement expenses of Electricity charges
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On 17 June 2020 at 06:53
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4215 Points Posted on 17 June 2020
Yes it is hold good
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On 17 June 2020 at 07:17
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Profession
28267 Points Posted on 17 June 2020
For electricity charges there is no need to raise invoice that's true.
A debit note is sufficient.
But many companies raise tax invoice .
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On 17 June 2020 at 07:34
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157 Points Posted on 17 June 2020
What should I do as per GST law ?
Issue Tax Invoice or Debit Note, please suggest with proper Rule.
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On 17 June 2020 at 08:21
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1238 Points Posted on 17 June 2020
Just Issue Debit Note without GST
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On 17 June 2020 at 08:58
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157 Points Posted on 17 June 2020
Please define any circular, notification or any law which can prove this.
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On 17 June 2020 at 09:02
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Designation
771 Points Posted on 17 June 2020
GST will be levied on recovery of electricity charged from. tenants in terms of Section 15 of CGST act. Electricity charges is ancillary to the main services, qualifies as composite supply. You can refer advance ruling of E-square leisure private Ltd.
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On 17 June 2020 at 09:16
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157 Points Posted on 17 June 2020
Thanks to all of you
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On 17 June 2020 at 17:05
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Student
23693 Points Posted on 17 June 2020
Agree with Hemal Sir...
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On 17 June 2020 at 17:14
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GST Practitioner
55067 Points Posted on 19 June 2020
No if it is charged on actual , Exempted under Notification 12/2017 CT (R) .

If the same is reimburse in capacity of Pure Agent , then also no GST attracts.


Note : AAR ruling is applicable only on the applicant who sought for it
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On 19 June 2020 at 00:28

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