Power consumers across Haryana, availing certain services from the power distribution companies such as release of new power connection, meter testing, shifting of meters or service lines and duplicate bills, will have to shell out GST @ 18% on fee for these services with effect from July 1, 2017.
In an apparently unpopular decision ahead of the parliamentary and assembly elections, the state government has decided to charge the GST with retrospective effect, July 1 last year, when the GST regime came into being across the country.
“It has been clarified that the service by way of transmission and distribution of electricity by an electricity transmission or distribution utility is exempt from the GST, while other services provided by the discoms are taxable. The GST is to be charged from the consumers for services provided by the discoms wef July 1, 2017,” a circular issued the Power Department quoting a Union Finance Ministry order said. The order, however, said prior to the recovery of the GST arrears, a notice would be issued to the consumers concerned.
Meanwhile, the order said “the service provided by the Central/state government to any business entity, including PSUs, by way of guaranteeing the loans taken by them from financial institutions against consideration in any form is taxable.”
Read more at: https://www.tribuneindia.com/news/haryana/pay-18-pc-gst-to-power-firms-for-services-retrospectively/639101.html