• Gst on electricity and water connection charges

Need reference documentation to back up my argument that GST is not applicable on Electricity and water connection charges taken by builder at the time of construction of a villa with in a gated community, which is part of a big construction project consisting of villas and Appartments.

Builder is arguing that since the connection is being taken in his name, GST is applicable. He also clarified that at the time of handover the connection and meter will be in my name.
Asked 4 years ago in GST

- Electricity and water connection charges are classified under external development charges, liable to GST. You are receiving the services from the builder therefore liable to GST.

Vivek Kumar Arora
CA, Delhi
4960 Answers
1108 Consultations

If the builder is charging you this amount this would be service for him and included in his turnover so he will have to charge GST on it.

If it was taken by the society which would be registered as a RWA then same would not be liable for GST.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4293 Answers
101 Consultations

Dear Sir,

 

Hope you are doing well !!

 

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
5188 Answers
299 Consultations

Dear sir

ur builder is right 

since he is giving u the service that will bi liable for gst.

 

Poorvi Jain
CA, Indore
143 Answers
1 Consultation

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