Customers who replace electricity meters for a three-phase electricity connection, after damage or disconnection, will not be required to pay 18% GST on replacement charges of 1,610 to Tamil Nadu Power Distribution Corporation Ltd (TNPDCL), permitting them to save 290.
GST on 25 services has been removed by TNPCDL on all consumers from households to industries following a notification of the Central Bureau of Indirect Taxes and Customs (CBIC) waiving off the specific services from the GST band. The same amendment came into force retrospectively on October 10.
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One of the services is the replacement of meters others comprise the name transfer of service connection, temporary disconnection, reconnection, reduction of demand, and estimate charges. 18% GST has been imposed on 215 while applying for a new domestic connection too has been withdrawn.
No GST is levied on the consumption of electricity, but miscellaneous services were imposed at 9%-18% as state GST and 9% as central GST. Customers do not feel happier from this. While the electricity tariffs are rising every year, this GST exemption is a small relief.
The whole domestic consumer category has been advantageous with the exemption to the state-made name transfer of service connections to the existing owners of the properties mandatory last year, said Vinoth Kumar of Kundrathur.
As per the Tangedco official, it cited many states along with TN have approached the GST council for clarity on the service tax on miscellaneous services. “The word ‘etc.’ in the earlier clause confused me, and all Discoms started levying GST on miscellaneous charges fearing penalty.
The GST council has clarified that GST is applicable only on services requested by consumers, leading us to revoke GST on several services.
The industries are not required to claim the GST via ITC. K Venkatachalam, chief advisor to Tamil Nadu Spinning Mills Owners’ Association said that this GST payment is always revenue material since it can be claimed back.
On harmonic compensation charges, capacitor compensation charges, excess contract load charges, and increase/reduction of demand charges there is an 18% GST imposed on the industries.
