5% GST on electricity may cause Rs 5,700-crore loss to states, Centre

Power cost may fall for industrial consumers, says NTPC-commissioned report

A proposal to bring electricity under the goods and services tax (GST) regime may cause a fiscal hole of Rs 5,780 crore for both states and the Centre. In a report commissioned by state-owned NTPC, a 5 per cent GST rate has been suggested for electricity.

In a scenario when all existing electricity duties are also subsumed under the GST, the losses balloon to Rs 59,000 crore with the lion's share to be borne by states, that is, Rs 57,000 crore. 

The report, however, is based on 5 per cent GST and partial electricity duties.

The ministry of power and ministry of finance