Taxation of Electricity under GST Regime
Definition of Goods under Revised Model GST Law
Section 2 (49) of Revised Model GST Law, defines goods
(49) “ goods’’ means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
Issue of Taxation of Electricity under GST Regime
Taking into consideration definition of ‘goods’ as per section 2(49) , “electricity” which is goods will be covered under GST laws because new article 246A overrides articles 246 (Seventh Schedule of Constitution) and 254 (Inconsistency between laws made by Parliament and laws made by the Legislatures of States).
Considering Taxes on the consumption or sale of electricity is mentioned under entry-53, List-II (State list) of the seventh schedule of Constitution, The Central and State Government may keep ‘electricity” outside the purview of GST.
Article 246A provides that notwithstanding anything contained in articles 246 and 254, The Parliament has powers to make laws with respect to goods and services tax imposed by the Union or by such State
Suggestions relating to Electricity under GST Regime
It is suggested that the aspect of taxation of electricity be suitably clarified under GST regime
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