RWAs Liable To Pay GST For Over-Charging Electricity Tariff From Flat Owners
NDTV
The CBIC clarification came after doubts were raised on the applicability of GST on the electricity supply by real estate companies, malls, airport operators etc to their lessees or occupants.
Real estate developers and RWAs will be liable to pay 18 per cent GST on electricity bills if they charge from flat owners more than the power tariff prescribed by Discoms.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the applicability of GST on reimbursement of electricity charges received by real estate companies, malls, airport operators etc from their lessees/occupants.
As per the clarification, where electricity is supplied by the real estate owners, resident welfare associations (RWAs), real estate developers etc as a pure agent, it will not form a part of the value of their supply.
