Income received on sale of power units of solar power generation

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This discussion clarifies whether income generated from selling solar power units to BESCOM is subject to GST. The consensus is that such sales are generally not taxable under GST. This is supported by specific exemptions found in Notification No. 12/2017 (CT)R, which exempts the transmission or distribution of electricity by utilities, and Notification No. 2/17-CT(R) (serial no. 104), which exempts electricity supply.

b v narayana

b v narayana (Querist)
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01 September 2022 Sir, My client is having income from sale of units of solar power generation from BESCOM, (which is installed on roof of assessee's office/factory premises). He is having around Rs.95 lakhs per year, whether this amount is taxable under GST or not. There is no mention of GST taxability in agreement between the assessee and BESCOM. Please clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 September 2022 GST not applicable on power sales.

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b v narayana

b v narayana (Querist)
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02 September 2022 Thanks for the reply Sir, but as per notification No 12/2017 (CT)R dtd 28.06.2017, it says supply by - Heading 9969 - Transmission or distribution of electricity by an electricity transmission or distribution utility is not taxable. Here electricity transmission or distribution utility is - State Electricity Board, Pl clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2022 A supply of electricity is exempted vide Notification No.2/17-CT(R) dated 28.6.17 as amended (serial no.104). It is relevant to mention here that as per Section 2(23) of Electricity Act, 2003, the words, 'electricity' and 'electrical energy' convey the same meaning and message.

See serial number 104

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