TaxTMI 
TaxTMI 
2025 (9) TMI 1043
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....h reads as under: - (a) to undertake transmission of electricity through intra-state transmission system; (b) to discharge all functions of planning and co-ordination relating to intra-state transmission system with (i) Central Transmission utility; (ii) State Governments; (iii) Generating companies; (iv) Regional Power Committees; (v) Authority; (vi) Licensees; (vii) Any other person notified by the State Government in this behalf; (c) to ensure development of an efficient, co-ordinated and economical system of intra-state transmission lines for smooth flow of electricity from a generating station to the load centres; (d) to provide non-discriminatory open access to its transmission system for use by: - (i) any licensee or generating company on payment of transmission charges; or (ii) any consumer as and when such open access is provided by the State Commission under sub-section (2) of Section 42, on payment of the transmission charges and a surcharge thereon, as may be specified by the State Commission. 4. The applicant has sought a ruling on the following quest....
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....An option is given by the applicant to the consumers to themselves arrange for having such construction/erection. However, where the consumers do not avail such option, the applicant is bound to get such construction/erection carried out through its contractors and the reimbursement is claimed from the consumers as per the GERC regulations. Irrespective of who gets the construction done, the transmission system vests solely with the applicant. (g) Even prior to Entry No. 25A, the applicant believes that no tax was payable under the GST Acts on reimbursement received towards construction of bays, cables in view of Sr. No. 25 of Notification No. 12/2017-CT(R) dtd. 28.06.2017. (h) The construction/erection of bays, sub-stations, overhead lines and underground cables did not result in any 'supply' under the GST Acts since the ownership of the entire transmission system remains with the applicant. (i) The applicant's activity is that of transmission of electricity and the erection of transmission system was incidental and in fact integral part of such activity of transmission. (j) To avoid uncertainty, they had filed an application for advance ruling ....
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.... the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 9. We find that the appellant had initially approached this Authority in 2018 seeking a ruling as under :- "Whether or not the cost of construction/ erection of Bays/ Sub-Stations, Overhead lines and Underground Cables and other charges including Pro-rata charges, supervision charges, proportionate line charges, registration fees and operation and maintenance charges, recovered by the Applicant from the consumers, forms part of the value of supply of service of "Transmission of Electricity" under Section 15 of the Central Goods and Service Tax 2017 and since the said service is exempted from G....
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....tion No. 8/2024-CT(R) dtd. 08.10.2024. Thus, on first sight though the questions appear to be similar, they are substantially different from each other as they deal with different SI.Nos. of the same notification. We, therefore, hold that the present application dtd. 18.02.2025 is not hit by the bar provided in proviso to Section 98(2), ibid, and thus admit the same. Having held so, we move on to the merits of the case. 13. We find that the applicant is engaged in the transmission of electricity for which they create the necessary infrastructure like construction/erection of 'Bays'/ 'Sub-stations', 'Overhead Lines' and 'Underground cables', which are called by them as deposit work activities. The applicant is recovering the charges from their consumers for such deposit work activities under different heads such as material and erection charges, pro-rata charges, supervision charges, proportionate line charges, registration fees etc. 14. As per the applicant, these charges are incidental and ancillary to the principal supply of transmission of electricity. We find that the issue as to whether there is an exemption on incidental and ancillary service provided by a DISCOM viz. a....
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....ich are incidental, ancillary or integral to the supply of transmission and distribution of electricity by transmission and distribution utilities to their consumers, when provided as a composite supply are exempt. It was also informed by JS, TRU-I that the Fitment Committee has also suggested that the Special Leave Petition (SLP) pending in the Hon'ble Supreme Court on this issue may be withdrawn once the clarification Is issued. 5.47 The Hon'ble Member from Punjab stated that these services should not be treated as a composite supply and ancillary services such as rental charges against electricity meter etc. should instead be taxed as separate supply. The Hon'ble Member also suggested that if the Council decides to proceed with the modification, it should apply only prospectively as applying it retrospectively will have revenue implications for the States. 5.48 The Hon'ble Member from Andhra Pradesh, however, requested that the modification be applied retrospectively. 5.49 The Hon'ble Member from Uttar Pradesh also supported a prospective application, citing potential complications otherwise. 5.50 The Hon'ble Member from Andhra Pradesh noted t....
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....tion of electricity provided by electricity transmission and distribution utilities to their consumers. Nil Nil" This notification shall come into force with effect from the 10th day of October, 2024. 17. Thus, by way of the above notification, services which are also incidental or ancillary to the supply of transmission and distribution of electricity provided by electricity transmission and distribution utilities to their consumers were made exempt. This exemption was provided prospectively i.e from 10.10.2024, the date of the notification. 18. Therefore, as on date, apart from the transmission or distribution of electricity by an electricity transmission or distribution utility, the incidental and ancillary services to the supply of transmission and distribution of electricity provided by these utilities to their consumers are also exempted. We find that the exemption provided in Sr. No. 25A of Notification No. 12/2017-CT(R) dtd. 28.06.2017 provides exemption to incidental and ancillary services such as metering equipment on rent, testing for meters/transformers/ capacitors etc., releasing electricity connection, shifting of meters/service lines, issuing dup....