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GST on common expenses, Goods and Services Tax - GST

Issue Id: - 116750
Dated: 28-9-2020
By:- Amresh kumar
GST on common expenses

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Is GST levied on common expenses shared among two companies at same premises. This includes salary, electricity, internet, professional charges etc.


Amresh Kumar

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Showing Replies 1 to 4 of 4 Records

1 Dated: 28-9-2020
By:- Ganeshan Kalyani

Yes, GST is applicable when you recover the expenses borne on behalf of the other company by you. At the same time you will get the credit of the GST paid on the common expenses incurred by you.

2 Dated: 29-9-2020
By:- Amresh kumar

Sir/ madam,

Thanks for prompt reply.

Wether we have to pay gst on electricity also. Further telephone bills & Internet charges are inclusive of gst. What if we don't take ITC and wether the gst have to be charged on proportionate basis.

Any circular & Notfn or authority under the gst act & rules made there under and effective from which date.


Amresh Kumar

3 Dated: 29-9-2020
By:- Ganeshan Kalyani

Sir, even on electricity GST will have to be charged. This is because when you are not supplying electricity but only recovering that cost.

You can take credit of GST charged on telephone and internet charges proportionate to the amount recovered. If your supplies are taxable then full credit is allowed.

4 Dated: 30-9-2020

I support the views of Sh.Ganeshan Kalyani Ji. Both are distinct persons. Covered under Schedule 1 . Distribution of electricity is conditionally exempt. No loss as ITC can be taken. The purpose behind taxability is proper accountal of each and every transaction.


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