In re Harish Chand Modi (GST AAAR Rajasthan)
Reimbursement of electricity expenses had not been made on actual basis by the lessee to lessor as it has been collected in advance with rent and further adjusted by raising the invoice by the lessor. Further, the appellant has failed to establish themselves as pure agent. Reimbursement of electric expenses would form part of taxable value in term of clause (c) subsection (2) of Section 15 of the CGST Act, 2017.
Read AAR Order:- GST payable on reimbursement of electricity expenses if not on actual basis
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHAN
At the outset, we would like to make it clear that the provisions of both the Central GST Act, 2017 and the Rajasthan GST Act, 2017 are same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central GST Act, 2017 would also mean a reference to the same provisions under Rajasthan GST Act, 2017.
2. The present appeal has been filed under Section 100 of the Central GST Act, 2017 (hereinafter also referred to as ‘the CGST Act’) read with Section 100 of the Rajasthan GST Act, 2017(hereinafter also referred to as ‘the RGST Act’) by M/s Harish Chand Modi, Sardarpura, Jodhpur (hereinafter also referred to as ‘the appellant’) against the Advance Ruling No.RAJ/AAR/2021-22/19 dated 21.09.2021
BRIEF FACTS OF THE CASE
3. M/s Harish Chand Modi, 39, Bachchrajji ka bagh, 11th A Road, Sardarpura, Jodhpur-342003 (herein after referred as appellant) has filed appeal against Ruling issued by Authority for Advance Ruling Rajasthan vide order No. RAJ/AAR/2001-22/19 dated 21.09.2021. The Appellant has submitted appeal in this office in hard copy on 27.10.2021. Fee of CGST Rs. 10000/- and SGST Rs. 10000/- have been paid vide Challan dated 08.10.2021. Brief facts of the case are as under:-
3.1 The appellant is a registered assessee under GST laws having GSTIN -08ACEPM8844J1Z4. The appellant submitted that he had undertaken construction of its building and decided to give different floors or offices of its building on rent or lease. The appellant had entered into an agreement with its tenant. Appellant had given 5,437 sq feet (3,526 sq. ft on 7th floor and 1,911 sq. ft on 6th floor) at its premises “Shanti One”, Plot No 39, 11th A Road, Bachrajji ka Bagh, jodhpur-342003 hereinafter referred as “the said premises”, to the tenant on lease for a period 9 years and 11 months divided in 9 terms of 1 year each and 1 term of 11 months. The tenant needs to pay following amount in accordance with the rent agreement as attached herewith, the details of which is as under
