GST on replacement charges goes, power consumers breathe easy
Chennai: Customers replacing electricity meters for a three-phase electricity connection, after damage or disconnection, will no longer pay 18% GST on replacement charges of 1,610 to Tamil Nadu Power Distribution Corporation Ltd (TNPDCL), allowing them to save 290.
TNPCDLwithdrew GST on 25 services for all consumers, from households to industries, following a Central Bureau of Indirect Taxes and Customs (CBIC) notification exempting certain services from GST band. This change came into effect retrospectively from Oct 10. Replacement of meters is one of the services; others include name transfer of service connection, temporary disconnection, reconnection, reduction of demand, and estimate charges. The 18% GST levied on 215 while applying for a new domestic connection too has been withdrawn.
Consumption of electricity is not covered under GST, but miscellaneous services were charged 9%-18% as state GST and 9% as central GST. Customers, however, aren't happy. "While electricity tariffs are increasing every year, this GST exemption is a small relief. The entire domestic consumer category would have benefited had the exemption come before the state made name transfer of service connections to present owners of properties mandatory last year," said Vinoth Kumar of Kundrathur.
A Tangedco official said many states, including TN had approached the GST council for clarity on service tax on miscellaneous services. "The word ‘etc.' in the earlier clause caused confusion, and all discoms started charging GST on miscellaneous charges fearing penalty. Now, GST council has made it clear only services done at the request of consumers are GST leviable, so we have withdrawn GST on a number of services,"
