Breif Issue :
Facts & Issue Of The Case :
M/s TP Ajmer Distribution Limited (‘TPADL’ or ‘Applicant’ or ‘the Company*); having Goods and Services Tax (“GST’) Registration No. 08AAGCT2158P1ZR and is engaged in the business of distribution of electricity
The question/ issue before the authority of advance Ruling (AAR) for determination are:
(i) Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017-Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered from its customers?
The other services such as:
a. Application fee for releasing connection of electricity
b. Rental Charges against metering equipment
c. Testing fee for meters/transformers, capicitors etc
d. Labour charges from customers for shifting of meters or shifting of service lines
e. Charges for duplicate bill
(ii) Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer?
Decision:
In the light of clarification issued under Circular no. 34/8/2018 - GST dated 01.03.2018 issued vide F.No. 354/17/2018-TRU and provisions of GST Act, The Service provided by M/s TPADL with respect to non tariff charges recovered from their customers are not eligible for exemption and M/s TPADL is liable to pay tax on aforesaid recovery.
Refer to AAAR ruling on GIB/RAJ/T.P.Ajmer/18.10.2018/AAAR-44
To Download Complete GIB/RJ/ TP AJMER/11.05.18/AAR-149 click here