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GST applicability on registration fees

01 February 2019

sir i am from Odisha. In Odisha there is a company named OPTCL(Odisha Power Transmission Corporation Ltd) basically performs electricity transmission and collects registration fees, application fees, scheduling charges, market operation charges, system operation charges, wheeling charges etc. Is gst applicable on the above fees and charges. Pls clarify my doubt.

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4 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 01 February 2019

If your turn over above 20 lakhs/40 lakhs (as the case may be you can take registration under GST and Collect 18% on your service charges

Recently council also announced composition scheme for service providers.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 February 2019

Para 4 of Circular 34/8/2018 Dt. 1.3.18, its exempted .

Hence all such activities are cover under Transmission & Distribution of Electricty which is exempted under Notification 12/2017 CT
And Moreover As per Section 8 of CGST Act the tax liability thereof has to be determined by treating as composit supply & the principal supply is exempted so No TAX Attracts.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 February 2019

Sorry for above reply Its taxable not exempted As per Above said circular Hence GST is applicable registration fee, scheduling charges , market operating charges

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 February 2019

Actually Gujrat High Court gave judgement that the services which inculded within the amit of Transmission of Distribution of electricity to be determine by treating as composit supply hence will be exempted . So , ..in Gujrat state , such services shall be exemped .