Rajasthan High court has canceled the classification provided through the Union government that had permitted the council to impose the goods and services tax (GST) on a particular section of the power supply.
There is zero GST rate 
But the Central Board of Indirect Taxes and Customs (CBIC) provides the notification in 2018 imposing the GST upon the objectives like the application fee for releasing electricity connection, rental charges against metering equipment, the testing fee for meters, capacitors, and duplicate bill charges. The notification has been circulated post-GST council build recommendations to that change.
The applicant Jodhpur Vidyut Vitran Nigam, a public sector undertaking involved in the distribution and supply of electricity in different districts of Rajasthan confronted the latest circular.
Moreover, he directed that if the main notification privileged the supply and distribution of electricity from GST, the CBIC or even the GST official will not deduce some services through the clarificatory circular. The services mentioned in the circular are the section of the complete package or bundle of services, such as the supply and distribution of electricity. The High court controls the central government from raising the demand and taking special ways to return the taxes on the grounds of challenged orders.
“A well-reasoned ruling that has rightly looked into the substance of the transaction, which in the instant case was a supply of electricity and thus, held that ancillary charges like meter rental, testing fees, duplicate bill charges, etc, cannot be carved out and made taxable,”
