GST Exempted on Disconnection and 16 Other Power Services in UP

The U.P. Power Corporation Limited (UPPCL) has announced that 17 specific power-related services are now exempt from GST, following directives from the Union Finance Ministry. Effective October 10, 2024, services such as disconnection and reconnection charges, meter testing, and temporary connection installation fees are GST-exempt. This exemption aims to reduce the financial burden on consumers and provide clarity on GST applicability for power services. Previously, these services attracted an 18% GST. However, the new guidelines specify that the deposit service will continue to attract GST at 18%. Additionally, the notification addresses the reverse charge mechanism for renting non-residential property to registered persons, where the recipient is responsible for paying GST. These changes are expected to provide significant relief to power consumers in Uttar Pradesh and ensure compliance with GST regulations.