Now, no GST on disconnection, 16 other power services

In some relief to power consumers in Uttar Pradesh, U.P. Power Corporation Limited (UPPCL) has issued new guidelines regarding GST applicability on several billing system services.
According to a notification, which aligns with recent Union finance ministry’s directives, 17 power services will now attract no GST. These include disconnection and reconnection charges, processing fees for load changes and connection modifications, meter testing and replacement services, installation and removal charges for temporary connections, service line charges including labor and overhead costs.
Also, services such as interest on security deposit, cheque dishonour charges, theft charges (assessment) and OTS registration will remain GST-exempt.
“Earlier all these services attracted 18% GST in compliance with the Centre’s notification of 2020. Now, the Centre has issued a fresh notification withdrawing GST from 18 electricity related services,” a senior UPPCL official said. “The fresh notification came into effect from October 10,” he added.
The deposit service, however, would continue to attract GST at the rate of 18% like earlier, he added.
Of particular note is a new provision regarding “service by way of renting of any property other than residential dwelling to a registered person”, which has been specifically addressed in the notification, specifying that the GST on this service will be applicable under the reverse charge mechanism (RCM).
Under the RCM, the GST is paid to the government by the recipient of goods/ services and not by the supplier of goods/services.