LUCKNOW Opposite to the regulation, farmers in Uttar Pradesh are believed to have been charged 18% items and providers tax (GST) on energy connections of tube wells by discoms even because the principal accountant basic (PAG) has begun an audit in Lucknow district as a test case, taking suo motu cognisance of media experiences, individuals conscious of the matter mentioned.
The Madhyanchal Vidyut Vitaran Nigam Ltd (MVVNL), in response to them, has already admitted to having recovered GST from all 15 farmers who have been issued tube effectively connections in considered one of half a dozen rural distribution divisions in Lucknow between February 2022 and March 2023. The corporate is gathering particulars from different divisions within the district.
On July 26, 2018, the central authorities had introduced exemption on 18% GST on providers provided by electrical energy distribution utilities by the use of building, commissioning or set up of infrastructure for extending electrical energy distribution community as much as the tube effectively of the farmer/agriculturalist for agriculture use.
In pursuance of the Union finance ministry’s notification, the UPPCL additionally issued its personal notification speaking the centre’s orders to the sphere officers.
“Personal tube effectively energy connections issued to farmers by discoms stand exempted from the levy of GST with impact from July 27, 2018,” then UPPCL director (finance) Sudhanshu Dwivedi, mentioned within the round.
Nonetheless a number of months in the past, UP Rajya Vidyut Upbhokta Parishad chairman AK Verma alleged that discoms have been nonetheless recovering GST from farmers on the full estimated price of tube effectively connections by manipulating the orders.
Taking suo motu discover of Verma’s press assertion, the principal accountant basic (PAG) workplace right here started an audit within the Lucknow district on a test foundation.
“As per newspaper experiences, president of UP Client Council mentioned electrical energy corporations have deleted the order associated to the price information guide of the fee (UP Electrical energy Regulatory Fee). By importing flawed orders with arbitrary charges, energy corporations have collected extra quantity from farmers on the estimates of tube effectively connections whereas the GST is zero on tube effectively connections,” mentioned the PAG workplace in its letter to the discom on August 9.
“On this regard, data associated to non-public tube effectively connections of rural electrical energy distribution divisions located in Lucknow district could please be offered to audit for scrutiny on a test examine foundation,” it added within the letter. The PAG despatched a reminder too on August 15.
Now, the data offered to the PAG by the discom confirmed that each one the 15 farmers, who had been offered tube effectively connections beneath the Chinhat distribution division in Lucknow, have been charged the GST on the price estimates.
As per the file made out there by govt engineer, Chinhat division, Mukesh Singh, GST of ₹1,15,618 was recovered from 15 farmers on the full estimate price ₹7,87,994 between February 15, 2022 and March 9, 2023.
Verma, who was first to flag the difficulty, mentioned Chinhat division was only a test case. “When the audit is carried out throughout the state, hundreds of farmers shall be discovered to have been cheated by discoms by illegally recovering GST from them,” he claimed and demanded that the surplus quantity be refunded to farmers instantly.