Thiruvananthapuram: In a significant relief for Kerala State Electricity Board (KSEB) consumers, the Ministry of Finance has announced the exemption of Goods and Services Tax (GST) on various electricity-related services, following a decision by the GST Council. Up until now, services like meter rent, meter replacement, line changes, new electricity connection applications, and duplicate bill issuance have been subject to an 18% GST. With the newly issued notification, ancillary services related to electricity distribution and transmission will no longer be taxed.
The GST exemption covers meter rent and application fees for new electricity connections, offering financial relief to consumers. However, while the notification has been issued, the actual implementation in consumer billing is still pending. KSEB is in discussions with the GST Department to determine the specific services that will benefit from this tax exemption.
For example, domestic consumers with three-phase connections currently pay Rs 30 as monthly meter rent, along with an 18% GST (Rs 5.40). With the new notification, this GST charge will be eliminated. Meter rent, which can range between Rs 6 and Rs 1,000 per month depending on the type of connection, will also be exempted. KSEB is now working to finalize the details of which consumer categories will benefit and how the exemption will be applied. This move is expected to reduce overall electricity costs for many households and businesses across Kerala.
