GST on Electricity reimbursements by Tenants to the landlords

In re M/s Keysight Technologies International India Pvt. Ltd. (GST AAR Haryana)

Much-awaited clarity was recently provided by AAR- Haryana wherein the applicant raised questions on Taxability of Electricity reimbursements by the Tenants to the landlords.

There is this general practice wherein the Electricity connection is in the name of the building owners and Lease/Rent agreements generally cover the arrangement wherein the Tenants are expected to pay for the actual electricity consumption. The actual consumption is tracked with the help of Sub-meters installed at the premises.

In the instant case the questions answers are summarized here below:

1. Whether the supply of Electricity is Supply of Goods or Service?

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