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Centre cannot charge GST on power services: Rajasthan High Court

Power distribution services draw zero GST rate since they fall under the negative list of services released by the Union government in 2017

power, electricity, IIP, demand, discoms, distribution, companies, firms, transmission, transformer, workers

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The HC circular restrained the Union government from raising any demand and taking coercive measures to recover any tax on the basis of an impugned order.

Indivjal Dhasmana New Delhi

2 min read Last Updated : Feb 26 2021 | 12:02 AM IST

The Rajasthan High Court (HC) has quashed a clarification issued by the Union government that had allowed the authorities to impose goods and services tax (GST) on certain portions of power supply.

Power distribution services draw zero GST rate since they fall under the negative list of services released by the Union government in 2017.

However, the Central Board of Indirect Taxes and Customs (CBIC) came out with a circular in 2018 imposing GST on various activities, such as application fee for releasing electricity connection, rental charges against metering equipment, testing fee for meters, capacitors, and duplicate bill

Topics : Rajasthan High Court GST Power Sector

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