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Informative

GST on Materials and Installation of Distribution Systems not payable by DISCOM when Deposit Work Undertaken by Consumers: AAR

Update / Judgement Date

23 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GST

The AAR ruled that GST is not payable by Distribution Companies (DISCOM) on materials and installation of distribution systems when deposit work is undertaken by consumers. This ruling clarifies the tax obligations of DISCOMs, especially in cases where consumers directly engage in deposit work. It provides clear guidance on when GST liability arises, particularly in consumer-funded projects.