In re Chamundeswari Electricity Supply Corporation Limited (GST AAR Karnataka)
Battery charging service provided by public charging station attracts 18% GST
The AAR, Karnataka, in M/s. Chamundeswari Electricity Supply Corporation Ltd. [Advance Ruling No. KAR ADRG 24/2023 dated July 13, 2023] ruled that the activity of charging battery of electrical vehicle is ‘supply of service’ covered under SAC 998714 ‘Maintenance and repair services of transport machinery and equipment’ and attracts GST @18% as per Sl. no. 25(ii) of the Notification No.11/2017-Central Tax (Rate), dated 28-06-2017 (“the Rate Notification”).
Facts:
M/s. Chamundeswari Electricity Supply Corporation Ltd. (“the Applicant”) want to set up various Public Charging Stations (“PCS”) for charging electric vehicles. The Applicant would like to issue tax invoices and collects “Electric Vehicle Charging Fee” from the customers which includes two components i.e. energy charges and service charges.
The Applicant submitted that the sale of energy is exempt as per Sl. No. 104 of the Notification No.2/2017-Central Tax (Rate), dated 28-06-2017 (“the Goods Exemption Notification”) and distribution of electricity is also exempt as per Sl. No. 25 of the Rate Notification.
The Applicant filed an application before the AAR, Karnataka for seeking clarification regarding the charging of electrical vehicle battery.
Issue:
Whether the battery charging services provided by public charging station is exempt from GST?
Held:
The AAR, Karnataka, in Advance Ruling No. KAR ADRG 24/2023 held as under.
