Relief for TN Consumers: TNPDCL Removes 18% GST on Electricity Meter Replacement and 25 Other Services
TNPDCL lifts 18% GST on meter replacements and 25 services, offering financial relief to Tamil Nadu electricity consumers
The Tamil Nadu Power Distribution Corporation Ltd ( TNPDCL ) has removed the 18% GST on the replacement of electricity meters and 25 other services. This exemption, in effect retrospectively from October 10, follows a Central Bureau of Indirect Taxes and Customs ( CBIC ) notification that waived GST on a specific range of services. The change benefits all categories of consumers,...
The Tamil Nadu Power Distribution Corporation Ltd ( TNPDCL ) has removed the 18% GST on the replacement of electricity meters and 25 other services. This exemption, in effect retrospectively from October 10, follows a Central Bureau of Indirect Taxes and Customs ( CBIC ) notification that waived GST on a specific range of services.
The change benefits all categories of consumers, from households to industries, reducing the financial burden on those requiring essential electrical services. One of the primary services to benefit from this exemption is the replacement of electricity meters for three-phase connections.
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Customers replacing meters due to damage or disconnection will no longer be required to pay the 18% GST on the replacement fee of Rs. 1,610, allowing for a savings of Rs. 290 per replacement. In addition, the 18% GST on the Rs. 215 charge for new domestic connections has been withdrawn, further easing costs for new consumers.
Other exempted services now free from GST include name transfers for service connections, temporary disconnections and reconnections, demand adjustments, and estimation charges. These services were previously taxed at 9% each for state and central GST, adding up to a total of 18%.
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According to Tamilnadu Generation And Distribution Corporation Limited (Tangedco) officials, there was confusion around GST on miscellaneous electricity services that had been prevalent due to ambiguous language in previous guidelines.
Many state distribution companies, including those in Tamil Nadu, had interpreted the term “etc.” in earlier directives as a signal to apply GST broadly, fearing penalties for non-compliance. The recent clarification from the GST council now specifies that only services explicitly requested by consumers are liable for GST, prompting TNPDCL to remove GST from a range of services previously taxed.
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For industrial consumers, some charges remain subject to GST, including harmonic compensation charges, capacitor compensation charges, excess contract load charges, and charges related to demand adjustments.
K. Venkatachalam, chief advisor to the Tamil Nadu Spinning Mills Owners’ Association, noted that industries can reclaim GST payments through Input Tax Credit (ITC), moderating the impact for industrial customers who may still face GST on these specific services.
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