Hello, Wish you all a very happy Vijoya Dashami and Lakshmi puja!. Hope you all are fine.
I have one issue and if anyone could suggest me then it would be very helpful for me to proceed. Actually our office is in Sector-5, Kolkata. This is a rental space. For electricity we recharge every month for a certain amount as per our requirement on the basis of working days etc. They deduct a fixed maintenance cost of Rs.2042/- every month on 11th midnight of every month. They provide a receipt also on this.
After GST while going to recharge in they have applied GST on total amount. When asked them they said that they provide electricity as distribution services and therefore GST is applicable on “Electricity distribution services” vide SAC Code 996912 at the rate 18%, other than Transmission or distribution of electricity by an electricity transmission or distribution utility vide Notification No. 12/2017- Central Tax (Rate) date 28.06.2017.
We told them whatever your activities are based on the item “Electricity”. You are supplying electricity and for that you can apply GST on maintenance but not full amount. If any recharge for Rs.1,00,000/- and then he or she will have to pay GST for Rs.18000/- @ 9%+9%= 18%.
So my question is whether it is O.K or not what they are applying? I shall be much obliged if anyone could help me out this.
Chandrajit Das Gupta
From India, Kolkata
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