Summary
- The West Bengal Authority for Advance Ruling (WBAAR) has ruled that electricity charges recovered at actuals by DH Maintenance Limited from occupants are excluded from the taxable value under GST.
- This decision stems from the application of Circular No. 206/18/2023-GST, which clarifies that such recoveries, treated as pure-agent amounts, do not attract GST if charged without markup.
- The ruling emphasizes the importance of adhering to the conditions set out in Rule 33 of the CGST Rules, 2017, regarding pure agents in GST transactions.
- This precedent is significant for facility management companies and commercial property managers seeking clarity on GST implications for electricity cost recoveries.
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