XYZ is a commercial Cooperative Society & has one electricity connection and hence one bill from BEST for the whole building. Individual members having sub meters only to assess their reading. Every month society is taking the actual reading from members sub meter for actual consumption of the electricity. Society is having the centralized air condition system and electricity is being provided to plant though common meter. The consumption of this plant is allocated to each member equally. (For each floor) If one member is having more than one floor then the distribution is done accordingly. Society is charging reimbursement of electricity charges on actual units of sub meter plus the average units of AC Plant in the following quarter bill. Is XYZ liable to pay GST on the electricity charges recovered from members even though it is only a reimbursement?
In our view no GST would be applicable on electricity charges recovered on actual basis. However if electricity generated by DG set is sold by RWA, GST will apply.
Team Clearmytax.in