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Reimbursement of electricity

29 September 2019

Can I charge GST On reimbursement of electricity expenses to Gujarat Gas Company as Electricity expense is non-gst item or I have to issue just debit note without charging GST Tax, please clarify.......

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 September 2019

Are reimbusing any other expense other then you quoted. ????

As per Valuation Rule 33 , its cannot cover under "pure agent" its might be reimburse on Actual Value incurred but if expense incurred & used /consume by you then GST is applicable . Moreover as the Electricity Expense bill is exempted by Notification 12/2017 CT (r) Hence GST is not Applicable & can be claim by Issuing Debit Note without GST.

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