Case Law Details
In re Gujarat Energy Transmission (GST AAR Gujarat)
Whether or not the cost of construction/ erection of Bays/ Sub-Stations, Overhead lines and Underground Cables and other charges are liable to GST.
Question: Whether or not the cost of construction/ erection of Bays/ SubStations, Overhead lines and Underground Cables and other charges including Pro-rata charges, supervision charges, proportionate line charges, registration fees and operation and maintenance charges, recovered by the Applicant from the consumers, forms part of the value of supply of service of “Transmission of Electricity” under Section 15 of the Central Goods and Service Tax 2017 and since the said service is exempt from GST under Sr. No.25 of Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017 and Notification No. 12/2017-State Tax (Rate) dated 30th June 2017, the same are not liable to GST.
Answer: Answered in the Negative. The cost of construction/ erection of Bays/ Sub-Stations, Overhead lines and Underground Cables and other charges including Pro-rata charges, supervision charges, proportionate line charges, registration fees and operation and maintenance charges, recovered by GETCO from the consumers, do not form part of the value of supply of service of “Transmission of Electricity” under Section 15 of the Central Goods and Service Tax Act, 2017.
GETCO is liable to pay GST @ 18% (CGST @9% and SGST@9%) on amount recovered towards cost of the construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network up to the premises of the consumers along with supervision charges under the service category of “Construction Services” (HSN Code-9954/995423).
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