In re TP Central Odisha Distribution Limited (GST AAR Odisha)
In the case of TP Central Odisha Distribution Limited, the issue revolves around whether the activities termed as “Deposit Work” and the accompanying supervision charges are subject to GST under Indian tax laws. Here’s a breakdown of the ruling and its implications:
Question 1:
The applicant sought clarity on whether the “Deposit Work” they undertake, as outlined in their application, and the 6% supervision charges received for monitoring this work, qualify as part of the services related to transmission or distribution of electricity. They argued that these activities should be exempt from GST under Entry 25 of Notification No.12/2017 – CT (Rate), dated 28.06.2017. Alternatively, they questioned whether these activities are merely ancillary or incidental to the principal supply of electricity transmission or distribution, thereby forming part of a composite supply.
Ruling (Answer to Question 1):
The Authority for Advance Ruling (AAR) determined that the activities in question do not qualify for exemption under GST laws. They concluded that the Deposit Work and supervision charges are not integral to the core services of electricity transmission or distribution. Therefore, these activities do not fall under the exemption provided by Notification No.12/2017 – CT (Rate).
