Q.1 From which date the GST is applicable?
Ans: From 01-07-2017
Q.2 Whether the Electricity Charges are taxable under GST?
Ans: As per the notification No. 12/2017 (Central Rates) Dt: 28th June, 2017 as per the entry no.25 – ‘Transmission or distribution of electricity by an electricity transmission or distribution utility’ are taxable under GST @ ‘NIL’.
Q.3 Is the other services rendered by the DISCOMS are taxable?
Ans: Yes. Ancillary services rendered by be DISCOMs are taxable as per the Circular No. 34/8/2018-GST Dt: 1st March 2018. The following services are taxable under GST @ 18%.
i. Application fee for releasing connection of electricity,
ii. Rental Charges against metering equipment,
iii. Testing fee for meters/ transformers, capacitors etc,
iv. Labour charges from customers for shifting of meters or shifting of service lines,
v. Charges for duplicate bill.
Q.4 Is the LT/HT application for new Service Connection Taxable under GST?
Ans: Yes. It is Taxable under GST @ 18%.
Q.5 Is the LT/HT Category Change/Load Change/ Name Changes/ Meter Testing Charges are Taxable under GST?
Ans: Yes. It is taxable under GST @ 18%.
Q.6.Is the Reconnection charges collected by the DISCOMS Taxable under GST?
Ans: NO. Reconnection charges are not collecting for giving the separate service it is a part of principal supply. Hence, as per the sec 8 of CGST Act it is a composite supply hence, the GST on Reconnection fee is NIL.
Q.7 Is the Developmental Chagres are Taxable under GST?
Ans: Yes. DISCOMs are collecting 1200/- per Kw towards the DC Charges and as per the Advance Ruling Authorities No.RAJ/AAR/2018-19/2 Dt: 05.112018 Other than “Transmission and Distribution Services by a Distribution utility” are Taxable Under GST @ 18%. As the developmental Charges are not part of Distribution of Electricity. Hence Developmental Charges are Taxable under GST @18%.
Q.8 Is the DISCOMs are collecting the GST on the Development Charges?
Ans: Yes. In wake of the DISCOM Advance Ruling No. RAJ/AAR/2018-19/2 Dt: 11.05.2018 has taken a decision to collect the GST on Developmental Charges w.e.f. 01.07.2017.
From 01.07.2017 to 30.11.2018. GST on Developmental Charges will be added to the consumer’s CC bills and from 01.12.2018 DISCOM is collecting Developmental Charges along with the GST from all classes of consumers like Agriculture consumers, LT consumers & HT consumers.
Q.9 Is the Agricultural consumers Development charges are taxable under GST?
Ans: Yes. For agriculture consumers development charges from 01.07.2017 to 30.11.2018 will be collected through demand notice and if not paid within the notice period will be added in the CC bill with applicable interest and collected accordingly. For other category of consumers like LT & HT, the GST amount along with applicable interest will be added to the CC bill under the “GST on Development Charges (DC)” and collected accordingly.
Illustration: Development Charges Rs.900/- per HP = Rs. 900.00
Service connection Charges Rs.25/- Per HP = Rs. 25.00
Total Charges = Rs. 925.00
GST@18% on Total charges = Rs. 166.50
Total Charges PER HP = Rs. 1091.50
If not paid along with CC bill in time, Interest of 18% per annum on GST amount of Rs.166.50 will be additionally collected.
Q.10 Do the Discom will provide the Tax invoice against the GST collections?
Ans: Yes. The Discom will provide the system generated Tax Invoice. If the amount is paid at Customer Service Centre (CSC) tax invoice will be issued at CSC’s . If the GST amount is paid at ERO’s, concerned AAO/ ERO will issue the Tax invoice. If the GST amount is paid through the payment gateways, GST invoice will be available for download in PDF format on successfully completion of transactions along with auto generated payment receipt (PR). For all the above mentioned transactions, GSTIN number of the consumer has to be provided by the consumer. Failing which no Input Tax Credit (ITC) can be availed by the consumer (LT&HT) against the Tax invoice generated.
Q.11 Do the consumer need to provide the GSTIN number?
Ans: Yes. If the GSTIN number is not provided, GSTR1 will be filed under unregistered category.
Q.12 Are the Cheque bounce charges subject to GST?
Ans: Yes. The cheque bounce charges are subject to GST @18%.
Q.13 Is the Supervision Charges collected by the DISCOMs on Depository Contributed Works / Turnkey Works Estimations are Taxable under GST?
Ans: Yes. The Supervision Charges are Taxable under GST @ 18%.