Now no GST on disconnection, 16 other energy services

In some relief to the power consumers in Uttar Pradesh, UP Power Corporation Limited (UPPCL) has issued new guidelines regarding the applicability of GST on various billing system services.

According to a notification, which is in line with the recent guidelines of the Union Finance Ministry, 17 energy services will now not receive GST. These include disconnection and reconnection charges, load change processing charges and connection adjustments, meter testing and replacement services, installation and removal charges for temporary connections, service line charges including labor and overhead costs.

Services such as interest on deposit, check breach charges, theft charges (assessment) and OTS registration also remain GST-exempt.

“Earlier, all these services attracted 18% GST, in accordance with the Centre’s 2020 notification. Now, the Center has issued a fresh notification withdrawing GST from 18 electricity-related services,” a senior UPPCL official said. “The new notification came into effect from October 10,” he added.

However, the deposit service would continue to attract GST at the rate of 18% as before, he added.

Of particular note is a new provision relating to “service by way of renting out a dwelling other than a residential dwelling to a registered person”, which has been specifically addressed in the notification, specifying that GST will apply to this service are subject to the reverse charge mechanism. mechanism (RCM).

According to the RCM, the GST is paid to the government by the recipient of goods/services and not by the supplier of goods/services.