Electricity Charges Recovered at Actuals by Maintenance Entities Excluded from GST Value: WBAAR

In re DH Maintenance Limited (GST AAR West Bangal)

WBAAR Ruling: Electricity Charges Recovered at Actuals by Maintenance Entities Excluded from Taxable Value

The West Bengal Authority for Advance Ruling (WBAAR), vide Order No. 10/WBAAR/2026-27, has examined the GST treatment of electricity charges recovered by a maintenance and facility management entity from occupants of a commercial property.

Background

M/s DH Maintenance Limited provides common area maintenance and facility management services at Harinath Heritage (Diamond Heritage), Kolkata. Electricity is supplied by CESC Limited through a common connection, with the consolidated electricity bill raised in the name of the property owner.

The Applicant proposed to recover electricity costs from occupants based on actual consumption and applicable CESC tariffs, comprising:

• electricity consumed by individual occupants;
• HVAC electricity based on dedicated sub-meter readings;
• common-area electricity apportioned based on super-built-up area; and
• separate CAM charges on a per-square-foot basis.

Issue

The question before the Authority was whether electricity charges recovered at actual cost could be excluded from the taxable value under Rule 33 of the CGST Rules, 2017, read with Circular No. 206/18/2023-GST.

The Department contended that electricity was ancillary to the principal maintenance service and, therefore, the entire amount constituted consideration for a composite supply taxable at 18% under SAC 9969.