GST levy on services provided by DISCOMS under State Electricity Act.

Recently vide circular ref 32/06/2018-GST council has given clarification regarding taxability of various services provided to consumers by electricity distribution companies of India (DISCOMs). Which are detailed below.

Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25.

However the other services provided are taxable., such as-

i. Application fee for releasing connection of electricity;

ii. Rental Charges against metering equipment;

iii. Testing fee for meters/ transformers, capacitors etc.;

iv. Labor charges from customers for shifting of meters or shifting of service lines;

v. charges for duplicate bill

From the above clarification, it is clear that only the services provided by way of transmission or distribution of electricity are exempt from GST. Rest of all the service provided by DISCOMS are taxable