GST on Electricity in the offing

<p>GST on all Energy Sources has been long pending. Particularly, the power plants have been facing a tough time. All their inputs are GST chargeable while their output, Electricity is not covered under GST. Instead, Electricity Duty is payable for Electricity. With close margins ruling the roost in electricity business, it becomes all the more difficult for power plants to come out of the red, they have been for a long time.</p><p>The good news now is that the Prime Minister's Office has issued a direction for quick implementation of GST for Energy.  When we say energy, it should ideally cover, oil, gas, electricity and coal. Petrol and Diesel bills apart from Electricity bills can all be offset against the tax paid for the sale of their products. This would be a great advantage for most of the industries and should bring down the price levels by about 10%. </p><p>GoI might look at it as a major path breaker for the upcoming elections.</p><p><a href="http://www.taxscan.in/wp-content/uploads/2018/06/GST-Settlement-of-Funds-Taxscan.jpg">Please see the news as reported in Economic Times.</a></p>

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