Page 36 - GSTL_14th May 2020_Vol 36_Part 2

J36 GST LAW TIMES [ Vol. 36
Further transmission or distribution of electricity by an electricity trans-
mission or distribution utility is exempted under Serial No. 25 of Notification No.
12/2017, dated 28-6-2017.
Hence both supply of electrical energy as goods and transmission or dis-
tribution of electrical energy as service is exempted.
Electricity Distribution company making electricity supply are also re-
quired to make supply ancillary services relating to supply of electricity being in
nature of as application fee for releasing connection of electricity, rental charges
against metering equipment, testing fee for meters, transformers, capacitors, etc.,
labour charges from customers for shifting of meters or shifting of service lines
and charges for duplicate bill.
C.B.I. & C. vide Circular No. 34/8/2018-GST, dated 1-3-2018 - Service by
way of transmission or distribution of electricity by an electricity transmission or
distribution utility is exempt from GST under Notification No. 12/2017-C.T.
(Rate), Sl. No. 25. The other services such as, -
(i) Application fee for releasing connection of electricity;
(ii) Rental Charges against metering equipment;
(iii) Testing fee for meters/transformers, capacitors etc.;
(iv) Labour charges from customers for shifting of meters or shifting of
service lines;
(v) charges for duplicate bill;
provided by DISCOMS to consumer are taxable.
However in a writ petition filed before High Court of Gujarat by Torrent
Power Ltd. related supplies cannot be supplied separately nor are the principal
supply and related supplies independent of each other. The related supplies are
dependent on the principal supply of transmission and distribution of electricity
and vice versa, neither service can be provided independent of the other. The ser-
vices provided by the petitioner are in the nature of composite supply and there-
fore, in view of the provisions of clause (a) of Section 8 of the CGST Act, the tax
liability thereof has to be determined by treating such composite same as a sup-
ply of the principal supply of transmission and distribution of electricity.
Supply not naturally bundled will be a mixed supply
Mixed supply means two or more individual supplies of goods or ser-
vices, or any combination thereof, made in conjunction with each other by a tax-
able person for a single price where such supply does not constitute a composite
supply
(1) Capable of two or more individual supply
(2) Supplied in conjunction with each other’s
(3) Supply for a single price
(4) Supply is not a composite supply.
In view of the above provisions it can be observed that all the supply are capable of
being supplied individually.
Application was filed by Lindstrom Services India Pvt. Ltd. before AAR
under GST, Maharashtra. Renting of workwear along with other services such as
transportation, weekly washing, etc. for a single consideration. Contract consists
of more than two taxable supplies of service. Services other than renting of
GST LAW TIMES  14th May 2020  36