Applicability of GST on The Power Transmission

Abstract

Under the new GST regime, while various goods & services have been covered for charging GST under various rates, certain goods & services have been excluded from the GST regime.

Transmission and distribution of electricity by transmission and distribution utility is exempt from GST. India being the third largest producer and third largest consumer of electricity, the impact of no GST on above is to be noted with regard to the 3 sub sectors of power sector- power generation, transmission and distribution. This article analyses the impact of GST on the Power Sector as well as educate the reader about generation, transmission and distribution of electricity.

Finally, overall impact of no GST on power sector and consumers has been analysed.