The Noida Power Company Limited (NPCL) in an action set to propose certain financial relief to the power consumers in Greater Noida, has exempted 18% Goods and Services Tax (GST) on distinct ancillary services of the electricity distribution, as per the officials.
The waiving off applicable to significant services to the electricity distribution sector makes the electricity cheaper for the power consumers in the region which arrived as an outcome of a notification furnished via the Ministry of Finance in this regard in October, they cited.
As per NPCL, the waiving off comprises an array of services significant for the daily management and expansion of electricity distribution. The services have been waived off from GST along with the application fees for the new electricity connections, rental charges for meters, and testing fees for essential equipment like meters, transformers, and capacitors.
The waiving off GST exemption specifies the Commitment of the NPCL to supporting cheaper energy access in Greater Noida. The very exemption is pertinent with the efforts to make significant utilities cheaper, particularly as households and businesses face rising expenses in the other fields, NPCL spokesperson Manoj Jha quoted.
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The same relief lessens the expenses of electricity services. NPCL has motivated customers to analyze their bills and use the services that are GST exempted to increase their savings. The devotion of the NPCL is to make electricity services consumer-oriented and economically accessible, he said.
No matter whether it is the labour charge to transfer the meters or service lines, fees to furnish the duplicate bills, and additional incidental services tied to the electricity distribution are within the same exemption. The government through removing the GST on such services has the motive to lessen the financial load of households and businesses, as per the officials.
To ensure the Discom utilised an 18% GST charge on distinct ancillary services pertinent to the electricity distribution in Greater Noida. The same comprises the fees for the new electricity connection applications, meter rentals, equipment testing (like meters, transformers, and capacitors), labour charges for shifting meters or service lines, and charges for issuing duplicate bills, among others.
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Under the mentioned standard GST rate these charges were applicable to the services, which contributes to the other costs for the consumers on top of the regular electricity tariffs. Nearly 170,000 power consumers under the jurisdiction of the NPCL in Greater Noida, officials cited.
GST elimination of such services puts pressure on the consumers. It lowers electricity bills as well as makes the services accessible without additional charges load, said Naveen Agarwal, a resident of Techzone 4, Greater Noida.
