Rent on electricity meter comes under GST, move may
draw criticism
Indirect tax department
has clarified that rent on electricity meter draws goods
and service tax (GST), a development which is likely to
draw criticism from the industry.
The Central Board of
Excise and Customs (CBEC) said even though electricity
is exempted from GST, rent on electricity meter is not.
Pratik Jain, partner PwC,
said there was a contrary circular under the service tax
laws. “Industry is likely to pitch in for an exemption
on these ancillary charges else consumers will have to
bear the additional burden,” he said.
He said industry view is
that it should not be taxable and should be treated as
an incidental to transmission and distribution of
electricity.
Besides, GST will also be
imposed on application fee for releasing connection of
electricity; testing fee for meters, transformers,
capacitors; labour charges from customers for shifting
meters or shifting service lines. |