Relief for power consumers as Tangedco withdraws GST on 25 services
Even though electricity consumption is not covered under GST, various miscellaneous services offered by the utility were covered under the GST band by levying 18 per cent.
Tangedco
CHENNAI: In a relief to consumers, Tangedco has said that it has withdrawn the levying of GST on 25 services provided by it for all electricity consumers from domestic to industries, following the notification from the Central Bureau of Indirect Taxes and Customs (CBIC) exempting certain services from the GST band. The non-levy of the GST on the 25 services came into effect retrospectively from October 10.
Even though electricity consumption is not covered under GST, various miscellaneous services offered by the utility were covered under the GST band by levying 18 per cent.
According to Tangedco’s circular, it has exempted 25 services including the replacement of meters, name-transfer of a service connection, temporary disconnection, reconnection, reduction of demand and estimate charges. For example, a consumer applying for a new service connection would be levied 18 per cent GST on the application fees (Registration cum Processing charges) of Rs 215.
“Now there will be no GST on the application fees,” the official said.
A senior Tangedco official said that the CBIC notification came in the wake of the representation made by several distribution companies (DISCOMs) including Tangedco to the GST Council seeking clarity on the levy of service tax on miscellaneous services.
Due to a lack of clarity on levying GST, the official said that the DISCOMs started charging GST on miscellaneous fees fearing penalties.
“Now, the council has made it clear that the GST should be imposed on only services done at the request of consumers. So we have withdrawn GST on many services,” said the official.
