M/s VRM Estates Private Limited, the owner of a Metro Mall in Delhi rented out 10 shops spaces to retail shopkeepers with the supply of electricity bundled with renting of shops and/or maintenance of premises. The electr

As per recent CBIC Circular No. 206/18/2023-GST dated October 31, 2023 for clarification regarding applicability of GST on certain services, it has been clarified that when electricity is being supplied bundled with renting of immovable property, it will constitute composite supply. Consequently, GST rate applicable to renting of immovable property would be applied to entire transaction. Thus, in the given case, the contention of M/s VRM Estates Private Limited that it is not liable to pay GST on supply of electricity is incorrect and will be required to pay GST at the rate of its principal supply, renting of immovable property and/or maintenance of premise, as the case may be.