GST shoots up new power bills

Hyderabad: Don’t be stunned if you have a new power connection and your power bill seems unusually high this time. It has to do with a new tab, GST, that is included in the bill. Also, pay it quickly, as delay would mean paying extra 18 per cent interest on it every month.

The power department is helpless as GST is statutory for all connections taken after July 1, 2017, the day GST was implemented. Some customers have got Rs 1,080 as GST on development charges over energy charges for the month. Almost one lakh consumers who got new connections between July 1, 2017, and November 30, 2017, may get such high bills.

There was a lot of confusion in many departments on when they can collect GST.

The Telangana State Southern Power Distribution Company Limited later checked and got to know that GST on development charges should be collected once.

Thus, TSSPDCL has begun levying GST of 18 per cent on development charges for all new connections from December 1, 2017.

Usually, power distribution companies collect security deposit, application fee and development charges from new connections. With the implementation of GST there is a statuary order for the authorities to collect 18 per cent GST.

The consumer pays '1,200 for every KW and the connection differs from 1-5KW.

As TSSPDCL gives over two lakh new connections per year, around one lakh new connections may have been given in the said five months.

An official said on the condition of anonymity that GST was not collected for last five months, but it is now necessary for them to collect it. “Consumers should immediately pay GST,” he said.

“If they fail to pay it now, it will be added as an arrear and will keep adding 18 per cent interest every month. We are helpless as this is compulsory for connections taken after GST was implemented.”