Other exempt services (Transmission or distribution of electricity by an electricity transmission or distribution utility) [ Entry No. 25 ] - GST Ready Reckoner - GST

Transmission or distribution of electricity by an electricity transmission or distribution utility EXEMPTION ENTRY 25 Services provided by transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST. Mega Exemption Notification No. 12/2017-Central Tax (rate) dated 28.06.2017 defines the following terms: (z) electricity transmission or distribution utility means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003; or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government; Clarification:- Circular No. 34 / 8 / 2018 -GST Clarifies that Issues Held that (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (1) 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. The other services 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. Labour charges from customers for shifting of meters or shifting of service lines; v. charges for duplicate bill; provided by DISCOMS to consumer are taxable. EXAMPLE: Tata Power Delhi Distribution Limited has provided service by the way of transmission or distribution of electricity; such service shall be exempt.