Valuation under GST—Section 15 of CGST Act— In the instant case, the applicant is supplier of Renting & Leasing of Immovable Property (sac codes- 997212).

The applicant has not provided separate electric meter to the lessee in the instant case and as such the lessee cannot make the payment of electric charges directly to the electric company. In such circumstances the applicant makes the payment to the electric company and in-turn collects such charges from the lessee. To make the system work, the applicant has installed sub-meters and they collect the charges of the electric power used by the lessee as per the usage of power ascertained from such sub-meter.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT ARE AS FOLLOWS—

(a) Whether reimbursement of electricity expenses, on actual basis, by the lessee to lessor would form part of taxable value?

(b) If the answer to above is no, whether GST is levied on the reimbursement of expenses from the lessee by the lessor at actuals?

(c) If answer to the above is yes, what is the rate of GST applicable to said reimbursement of expenses?

The applicant had not acted as "pure agent" and invoice/bill/memo/document issued in relation to collect Electricity charges or incidental charges, maintenance charges, are in relation to composite supply of principal service of renting of immovable property as any incidental charges or expenses in respect of supply of service shall form part of value of taxable supply.

Held that— In the instant case, reimbursement of electricity expenses, on by the lessee to lessor would form part of taxable value as it is not on actual basis.

GST is levied on the reimbursement of expenses in the instant case. Since the principal supply provided by the applicant (here Lessor) is of Renting & Leasing of Immovable Property (sac codes- 997212), it will attract GST @ of 18% of the taxable value of supply.