16.12.2022: Contractors, commercial consumers can claim input tax credit against GST for services, says Tangedco

A number of contractors executing the work of the Electricity Department have complained that they are unable to get input tax credit for the Goods and Services Tax (GST) which they pay for purchasing any input material and equipment related to the project.  Electricity consumers having commercial connections are complaining about their inability to claim input tax credit for the GST paid for various services executed by the department. 

The commercial consumers say other than power supply services rendered by Tangedco, including replacement of old meters with new ones, commissioning of any transformers or even replacing any underground electricity cable for which GST is being levied, the consumers are unable to take the input tax credit. 

Swaraj Roy, a commercial consumer, said while there was a system for automatically claiming input tax credit for telephone bills, the users are unable to claim it against the GST levied for any services provided by Tangedco. 

A senior official of Tangedco pointed out that with the exception of power supply by distribution companies (Discoms), all other services rendered by them attracted GST. However, the official said commercial consumers could claim input tax credit for the GST paid to the department as returns had been filed up to date. He said the commercial consumers could claim the benefit by providing the GST number of the electricity department provided in the bill. He said there would be difficult in claiming credit in cases where invoices had not been issued as the electricity department only provided a receipt. However, the receipt number should be treated as the invoice for claiming the benefit, he said.

A senior official of the Commercial Taxes Department said under the GST rules, customers who have been levied GST for services rendered or any work carried out, were eligible for input tax credit.

Source: The Hindu

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