GENERAL10 Sept 2026
West Bengal AAR says actual-cost electricity recovery not liable to GST
West Bengal's Authority for Advance Ruling says electricity charges recovered at actual cost, with no markup or profit, can be left out of the value of maintenance services. It covers heating, ventilation and air-conditioning, or HVAC, and common areas. Housing societies and building owners can review their bills, but check with your tax adviser before excluding any amount.
Key Statutory Highlights
- The West Bengal Authority for Advance Ruling said electricity charges recovered at actual cost are not liable to GST.
- Charges recovered without any markup or profit, including for HVAC and common areas, can be excluded from the value of maintenance services.
- The report on this ruling was first published on September 10, 2026.
Actionable Advice for Taxpayers / Founders:If you recover electricity charges at actual cost in your maintenance bills, keep records that clearly show no markup was added, and speak to your tax adviser before you change how you raise those invoices.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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