In some relief to power consumers in Uttar Pradesh, the UP Power Corporation Limited (UPPCL) has issued new guidelines on the applicability of GST for several billing system services.

According to a notification, which aligns with the recent Union Finance Ministry directives, 17 electricity services will now not attract any GST. These include disconnection and reconnection charges, processing charges for load changes and connection changes, meter testing and replacement services, installation and removal charges for temporary connections, service line charges including labor costs and general expenses.

Also, services such as security deposit interest, check dishonor charges, theft charges (assessment) and TSO registration will remain exempt from GST.

“Earlier, all these services attracted 18% GST as per the Centre’s 2020 notification. Now, the Center has issued a new notification withdrawing GST from 18 electricity-related services,” said a senior UPPCL official. “The new notification came into effect from October 10,” he added.

The warehouse service, however, will continue to attract GST at the rate of 18% as earlier, he added.

Of note is a new provision on “service by way of letting of any property other than residential dwelling to a registered person” which was specifically addressed in the notification stating that GST on this service will be applicable on reverse charge basis. mechanism (RCM).

Under the RCM, GST is paid to the government by the recipient of goods/services and not by the supplier of goods/services.