GST payable on Reimbursement of electricity expenses if not on actual basis: AAAR

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.

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