TaxTMI 
TaxTMI 
2018 (11) TMI 1758
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....s per the said sub-section (2) of Section 97 of the Act, ibid advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or services or both, (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid, (e) Determination of the liability to pay tax on any goods or services or both, (f) Whether the applicant is required to be registered? (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term? 4. In the present case applicant has sought advance ruling on classification and applicability of GST rate on the services rendered while supply/ distribution of electric energy. Therefore, in terms of said Section 97(2)(a) & (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 5. The Assistant Commissioner, SGST, K....
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.... for temporary LT / HT connection. Regulation 2.2(1) of the UERC (The Electricity Supply Code) Regulations, 2007 Non-taxable 11. Charge for special meter reading on the request of the Consumer Regulation 3.1.2(7) of the UERC (The Electricity Supply Code) Regulations, 2007 Taxable @ 18% in terms of Circular 34/8/2018-GST, dated 1-4-2018 12. Assessment against theft and unauthorized use of electricity Chapter-5 of the UERC (The Electricity Supply Code) Regulations, 2007. NA 13. Service line charges and overhead line charges for release of new LT connection and for enhancement/ reduction in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. Exempted Service code-996912 14. Security deposits at the time of release of new LT connection and for enhancement in sanctioned load. UERC (Release of New LT Connections, Enhancement and Reduction of Loads) Regulations, 2013. NA 15. Recovery of cost of burnt meter from the Consumer Regulation 3.1.5 of UERC (Release of New LT....
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....e discussed as under : 7.1 From the documents submitted by the applicant we find that the applicant is registered in Uttarakhand with GSTIN bearing No. 05AAAC17135F1ZW and are engaged in supply/ distribution of electrical energy. During the course of said activity they are require to undertake certain activities like creation of infrastructure for distribution, installation and checking of energy meters/ capacitors etc. For that they collected charges from the customers which are pre-decided by UERC and not by them. The applicant has submitted that Electric Energy is classified under HSN 2716 00 00 which attract GST at "nil" rate. Further transmission or distribution of electricity by an electricity transmission or distribution utility is exempted vide Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017. But vide Circular 34/8/2018-GST, dated 1-3-2018 certain services rendered during supply/ distribution of electricity to the customers made taxable. 7.2 On going through the documents we find that it is an undisputed fact that the party is engaged in transmission or distribution of electricity and the same shall be treated as supply of service. The applicant claimed t....
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....ular 34/8/2018-GST, dated 1-3-2018 S. No. Issue Clarification 4 (1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are ex- empt from GST? (1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under Notification No. 12/2017-C.T. (R), Sl. No. 25. The other services such as, - (i) Application fee for releasing connection of electricity; (ii) Rental Charges against metering equipment; (iii)Testing fee for meters/transformers, capacitors etc.; (iv) Labour charges from customers for shifting of meters or shifting of service lined) (v) charges for duplicate bill; provided by DISCOMS to consumer are taxable. On perusal of the said circular I observe that the other support services such as, (i) Application fee for releasing connection of electricity; (ii) Rental Charges against metering equipment; (iii) Testing fee for meters/ transformers, capacitors etc.; (iv) Labour charges from customers for shifting of meters or shifting of service lines; (v) charges for duplicate bill provided by distribution c....
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....ricity and service rendered during the course of said service is covered under composite service and transmission or distribution of electricity constitutes the predominant element and therefore becomes the "principal supply" and other services as mentioned in Annexures A & B of the application shall form the part of that composite supply as ancillary inasmuch as distribution of electricity, energy cannot be effectively accomplished without installation of infrastructures such as substations, transmission towers and installation of meters to record electricity consumption for periodic billing and recovery of charges etc. On true and fair analysis of the aforesaid Notification, the conclusion is compelling that all services provided in relation to distribution of electrical energy are exempt from the liability to GST inasmuch as all such ancillary activities having a direct and proximal nexus with distribution of electrical energy shall be covered under transmission or distribution of electricity. To further strengthen my view I rely on following case laws : Noida Power Co. Ltd. v. Commissioner of C, Ex., Noida [2014 (33) S.T.R. 383 (Tri. - Del.)] "for the purpose ....