KSEB Bills to get a little Cheaper following GST Exemption for Incidental/Ancillary Services from GST Council
Once the new policy is fully enacted, KSEB customers are expected to benefit from reduced electricity bills, particularly through the removal of GST from various auxiliary services like metre rents and application fees
The Kerala State Electricity Board ( KSEB ) is set to reduce electricity bills following a Goods and Services Tax ( GST ) exemption on services related to electricity distribution and transmission. The exemption comes after a recommendation from the GST Council during its 54th meeting in September. As per reports, following the KSEB circular, various services that were previously subject...
The Kerala State Electricity Board ( KSEB ) is set to reduce electricity bills following a Goods and Services Tax ( GST ) exemption on services related to electricity distribution and transmission. The exemption comes after a recommendation from the GST Council during its 54th meeting in September.
As per reports, following the KSEB circular, various services that were previously subject to an 18% GST will now be GST-exempt. These services include meter rents, application fees for new electricity connections, and other charges that are incidental or ancillary to electricity distribution.
Prior to this, services such as meter rents and fees for new electricity connections were subject to GST, adding to the overall cost for consumers. However, the GST Council's decision to exempt these charges aims to reduce the financial burden on electricity consumers. The Council’s recommendation specifies that services incidental or integral to electricity distribution, such as testing fees, meter movement charges, and labour charges, should be GST-exempt.
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Although the KSEB circular has been issued, the practical implementation of these exemptions is still pending. The board is currently in discussions with the GST Department to determine the exact scope of the services that will qualify for the exemption.
Once the new policy is fully enacted, KSEB customers are expected to benefit from reduced electricity bills, particularly through the removal of GST from various auxiliary services like meter rents and application fees.
However, until the KSEB finalises the exempted services and incorporates them into billing, consumers will not immediately see the effect.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
This move by the GST Council is expected to bring significant relief to consumers, making electricity-related services more affordable across Kerala.
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