GST Exempted on Disconnection and 16 Other Power Services in UP



Quick Summary
Uttar Pradesh power consumers will benefit from a significant change as 17 power-related services are now exempt from Goods and Services Tax (GST). This includes charges for disconnection, reconnection, load changes, meter testing, and temporary connection installations. Previously, these services faced an 18% GST. While most services are now GST-free, deposit services will still attract the 18% tax. The new guidelines, effective from October 10, 2024, aim to ease the financial burden on consumers.

In a significant update for power consumers in Uttar Pradesh, the U.P. Power Corporation Limited (UPPCL) has announced new guidelines clarifying the GST applicability on a range of power billing system services. This follows recent directives from the Union Finance Ministry and brings relief by exem
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FAQ :

Seventeen power services are now exempt from GST, including charges for disconnection and reconnection, processing fees for load changes and connection modifications, meter testing and replacement, installation and removal of temporary connections, service line charges, interest on security deposits, cheque dishonour charges, theft charges, and one-time settlement registration.

Previously, these services attracted an 18% GST following a central notification in 2020.

The new GST exemptions are effective from October 10, 2024.

Yes, deposit services will continue to attract GST at the rate of 18%.

The update mentions that GST for 'service by way of renting of any property other than residential dwelling to a registered person' will be applicable under the reverse charge mechanism (RCM), meaning the recipient of the service is responsible for paying the GST.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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