18% GST relief on power related services in Greater Noida

GREATER NOIDA: In a move that is set to offer some financial relief to power consumers in Greater Noida, the Noida Power Company Limited (NPCL) has waived off 18% Goods and Services Tax (GST) on various ancillary services related to electricity distribution, officials said on Tuesday.

The exemption that applies to essential services within the electricity distribution sector, making electricity more affordable for power consumers in the region, came as a result of a notification issued by the Ministry of Finance in this regard in October, they added.

According to NPCL, the exemption covers an array of services crucial for the day-to-day management and expansion of electricity distribution. The services, now exempt from the GST, include application fees for new electricity connections, rental charges for meters, and testing fees for essential equipment like meters, transformers, and capacitors.

“The GST exemption underscores NPCL’s commitment to supporting affordable energy access in Greater Noida. This exemption aligns with broader efforts to make essential utilities more affordable, especially as households and businesses grapple with rising costs in other areas,” said Manoj Jha, spokesperson, NPCL.

“The relief directly reduces expenses associated with electricity services. NPCL has encouraged customers to review their bills and utilise the GST-exempted services to maximise their savings. NPCL is committed to make electricity services more consumer-friendly and economically accessible,” he added.

Be it the labour charge to shift meters or service lines, fees to issue duplicate bills, and other incidental services tied to electricity distribution are part of this exemption. By eliminating the GST on these services, the government aims to reduce the financial burden of households and businesses the officials said.

To be sure, the discom used to charge an 18% GST on various ancillary services related to electricity distribution in Greater Noida. It included fees for new electricity connection applications, meter rentals, equipment testing (like meters, transformers, and capacitors), labour charges for shifting meters or service lines, and charges for issuing duplicate bills, among others.

These charges were applied as per the standard GST rate on services, contributing to additional costs for consumers on top of regular electricity tariffs. There are around 170,000 power consumers under NPCL’s jurisdiction in Greater Noida, as per officials.

“Removing GST on these essential services shows a real understanding of the pressures consumers are under. It is not just about lower electricity bills, but also about making services more accessible without the burden of extra charges,” said Naveen Agarwal, a resident of Techzone 4, Greater Noida.