Liability to pay Goods and Services Tax (GST) for intra-state ...

Ruling: No GST on electricity delivery charges! Inward supplies not eligible for CGST and SGST credit.

Case Laws     GST

August 7, 2024

Liability to pay Goods and Services Tax (GST) for intra-state and interstate delivery of electrical energy. The applicant questioned if they could claim CGST and SGST paid during the procurement of a solar power plant as input tax credit towards their GST liability. The ruling found that since the applicant invoiced only for the supply of electricity without including delivery charges, which are exempt from tax, they were not liable to pay GST on both intra-state and interstate deliveries. Additionally, as their output supplies were tax-exempt, they were not eligible to claim input tax credit on their inward supplies such as the solar power plant under relevant tax provisions.

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