No GST on reimbursement of electricity charges on actual basis: WB AAR Ruling

In re Mega Flex Plastics Ltd (GST AAR West Bengal)

Authority for Advance Rulings (AAR), West Bengal, examined whether GST applies to the reimbursement of electricity charges collected by Mega Flex Plastics Ltd from its sub-lessee, White Saffron Grains LLP. The applicant had leased warehouse space under a sub-lease agreement, with provisions for the sub-lessee to reimburse electricity costs based on actual consumption. The company sought an advance ruling under Section 97 of the GST Act to clarify its tax liability on such reimbursements. The revenue department did not oppose the a

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