18 Percent GST For Electricity Meter

By SM.01 Jul, 2018




THIRUVANANTHAPURAM: GST will be charged for the electricity meter though GST is not applicable for electricity charge. The electricity board also added GST charge for the application fees for new connection. 18 percent tax fixed for services must be paid for the services.

The government is extending the application of tax when an year has passed on introducing GST. Transmission and distribution of power were exempted from GST.

KSEB had earlier decided not to charge tax for meter and related services as they are used for distribution. Then KSEB expressed its doubt whether GST is applicable for these services to the Central Board of Indirect Taxes and Customs. The Taxes and Customs Board ordered that GST is applicable for all electricity distribution companies in the country. Currently, the bill is given with the added tax.

The Centre has informed that GST is applicable for meter rent, meter examination fees, charge for replacing electricity lines and meters, and fees for duplicate bill.

4 types of meters are in use now. Rs 12 is charged for a single phase meter in two months and the GST is Rs 2.16. Rs 2.50 is charged for the three–phase meter with Rs 30 as rent per month. There are two more advanced meters that charge Rs 30 and Rs 1000 per month. The customer mustn’t pay GST for the meters that they buy.