THIRUVANANTHAPURAM: KSEB has updated its billing software after the Union government decided to exempt GST on meter rent, testing for meters, transformers, and capacitors. Accordingly, the KSEB has updated its in-house billing software where the consumers will be getting their new bill without the 18% GST on meter rent.
The GST Council in its 54th meeting held in early September in New Delhi had recommended regularising GST payment on certain support services provided by electricity transmission and distribution utilities. KSEB had been collecting 18% GST on meter rent since April 18, 2018.
But whatever amount that has been collected from the consumers has been going to the central government. Now as the GST Council has decided to exempt electricity transmission and distribution utility from GST, the KSEB has neither got any profit nor loss.
The consumer stands to get benefits where a three- phase meter will get a waiver of Rs 5.40. A KSEB finance official told TNIE that the consumers will get their new bill without the GST component with effect from October 23.
“The GST collection has been completely revoked. But there will be differences in deposit-related works. Within the next few days the software to quantify deposit-related works will also be changed. But the GST will be applicable towards solar registration and solar plant installation,” said a KSEB finance official.
An IT department official at KSEB confirmed to TNIE that they have updated the software and the GST component has been removed from the consumer bill.
“Until now power consumers were charged GST on meter rent alone. Now the state has over a lakh solar power consumers. They will have to pay GST towards solar registration and also for installing solar plants,” said a KSEB IT wing official.
Following the GST Council’s intervention, the central government had come out with the order exempting GST on October 9.