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.

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