Electricity Surcharge for Open Access Consumers Taxable Under CGST Act; Input Tax Credits Allowed for Capitalized Goods.

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....Taxability of additional surcharge collected by a government-owned electricity distribution company from open access consumers who source electricity from private generators. The key points are: The company is exempt from filing certain GST returns and can claim input tax credit on capitalized goods/services and services for support/auxiliary supplies. It can also claim proportionate input tax credit on taxable output supplies of support services and goods like scrap. The company is eligible to claim taxes paid under reverse charge mechanism as input tax credit. The additional surcharge collected from open access consumers is to meet the fixed costs arising from the company's obligation to supply electricity as per power purchase agreements.........