Electricity Charges Received By Malls, Airport Operators Etc. From Lessees Bundled With Renting, Forms Composite Supply: CBIC
1 year, 2 months ago

Electricity Charges Received By Malls, Airport Operators Etc. From Lessees Bundled With Renting, Forms Composite Supply: CBIC

Live Law  

The Central Board of Indirect Taxes and Customs has clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises it forms a part of the composite supply and shall be taxed accordingly.The Board has issued the clarification in respect of the recommendations of the GST Council in its 52nd meeting held on October 7, 2023,. The Central Board of Indirect Taxes and Customs has clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises it forms a part of the composite supply and shall be taxed accordingly. The principal supply is renting of immovable property and/or maintenance of the premise, as the case may be, and the supply of electricity is an ancillary supply as the case may be. Even if electricity is billed separately, the supplies will constitute a composite supply and therefore, the rate of the principal supply i.e., GST rate on renting of immovable property and/or maintenance of premise, as the case may be, would be applicable.

Board Supply Electricity Gst Cbic Immovable Property  renting  gst  board  operators  andor  supply  malls  forms  charges  supplied  received  property  maintenance  immovable  composite  lessees  electricity

History of this topic

Commercial property rentals now under Reverse Charge Mechanism: GST Council
4 months ago

Commercial property rentals now under Reverse Charge Mechanism: GST Council

Hindustan Times  

The Goods and Services Tax Council at its 54th meeting in New Delhi on September 9 decided to bring renting of commercial property by an unregistered person to a registered person under Reverse Charge Mechanism, in order to prevent revenue leakage. The GST Council also decided that commercial property will now come under the reverse charge mechanism. Clarifies on tax …

Electricity under GST purview
1 year ago

Electricity under GST purview

Deccan Chronicle  

New Delhi: The inclusion of electricity within the goods and services tax framework may be a reality soon as the government is exploring all the options in this regard. “As the power ministry is well aware of its potential effects, especially on the revenue loss for the industry, state revenues, and household electricity expenses, the Centre and states are jointly …

Government Explores Inclusion of Electricity in GST Framework
1 year ago

Government Explores Inclusion of Electricity in GST Framework

Deccan Chronicle  

New Delhi: The inclusion of electricity within the goods and services tax framework may be a reality soon as the government is exploring all the options in this regard. “As the power ministry is well aware of its potential effects, especially on the revenue loss for the industry, state revenues, and household electricity expenses, the Centre and states are jointly …

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