gst on electricity produced and supplied by sugar mills to electricity grid

[NEERAJ BANSAL]

Whether electricity produced by sugar mill by using by-product of sugar production (bagasse) and further supplying such electricity to electricity grid, comes under preview of GST or not.

AI Summary

Debate on GST applicability for electricity from bagasse by sugar mills; input credit reversal and exemptions questioned. A discussion on a forum addressed whether electricity produced by sugar mills using bagasse and supplied to the electricity grid is subject to GST. One participant noted that the sale of electricity is typically exempt, but questioned whether the transaction is a sale or a reduction in electricity charges. Another highlighted the need to consider whether input credit reversal is necessary, as it is clear under the excise regime but potentially disputable under GST. A third participant pointed out that exemptions for electricity supply are conditional, referencing specific notifications and definitions related to electricity transmission or distribution utilities.