2025 (7) TMI 1523 - SCH - GST

SC upholds no GST on regulatory fees by CERC and DERC under Section 2(17) of CGST Act

The SC dismissed the Special Leave Petitions challenging the levy of GST on regulatory fees collected by CERC and DERC. The Court upheld the HC's finding ... Levy of GST - Regulatory fees collected by the Central Electricity Regulatory Commission (CERC) and the Delhi Electricity Regulatory Commission (DERC) - respondents have sought to draw a dichotomy between the “adjudicatory” and “regulatory” functions which these two statutory bodies discharge to essentially hold that the revenue earned from the latter would be subject to tax under the CGST and IGST Acts - It was held by High Court that the regulatory function discharged by Commissions would clearly not fall within the scope of the word 'business' as defined by Section 2 (17). HELD THAT:- There are no good ground to entertain these Special Leave Petitions. The Special Leave Petitions are, accordingly, dismissed. The Supreme Court, with Justices J. B. Pardiwala and R. Mahadevan presiding, after hearing counsel for both parties, granted condonation of delay but found 'no good ground to entertain these Special Leave Petitions.' Consequently, the petitions were dismissed, and any pending applications were disposed of.