GST update on landmark decision granting exemption to ancillary supplies in relation to supply of electricity

Last updated: 15 April 2020

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Quick Summary

The Gujarat High Court has ruled that ancillary services related to electricity supply, such as application fees, meter testing fees, and duplicate bill charges, are exempt from GST. This decision aligns with the principle that when the principal supply (electricity distribution) is exempt, naturally bundled ancillary supplies should also be exempt. The court noted that these services have historically been considered part of electricity transmission and distribution exemptions.

Court :
Gujarat High Court

Brief :
Recently Gujarat High Court ([TS-858-HC-2018(GUJ)-NT-Torrent Power Ltd]) has held that when a company is engaged in the business of supply and distribution of electric power which is principal supply, the ancillary and related supply such as application fee for release of connection, meter testing fees, rental charges against meter equipment/transformers capacitors, fees for shooting of meters or lines, charges for duplicate bills, shall also not be liable for GST.

Citation :
M/s TP Ajmer Distribution Limited [TS-263-AAR-2018-NT] relying upon the Circular issued on 1st March 2018

Daily Limit Reached