A recent notification has been issued concerning GST and your electricity meter, and it’s important to review the details promptly.
The central government has released an update about GST regulations specifically related to electricity meters. Now, GST will no longer apply to 17 specific services associated with electricity meters. Here’s what you need to know.
In a welcome change for electricity consumers, the government has decided to exempt certain services from GST charges. These services include installing electricity meters, increasing load capacity, and more. As per the government notification, power distribution companies will no longer impose an 18% GST on these services.
Power distribution companies in various states will now be unable to collect GST on a list of 17 services. This decision follows a recent clarification by the Central Board of Indirect Taxes and Customs (CBIC), aimed at relieving electricity consumers from GST charges on these specific services.
States such as Uttar Pradesh, Karnataka, and Tamil Nadu have already started implementing these guidelines. According to the CBIC clarification, an 18% GST will only be collected on deposit services, while services like disconnection, reconnection, cheque bounce fees, meter installation, inspection, testing, meter changes, load increase, and overhead charges will no longer be subject to GST.
It’s worth noting that most states have issued directives to stop GST collection on these 17 services as of October 10.