Question45: A taxpayer is supplying Electricity to another registered person . Now please tell whether the monthly billing entry should be made at B2B column of GSTR-1 where invoice wise and GSTIN wise entries are made where we can show the invoice value at 0% tax rate supply or at the column where on Nil Rated/Exempt Supplies are to be entered only .

Answer We are redrafting the question as follows:
Ques. Whether the distribution of electricity by registered person to other registered person is exempted or taxable'
Ans. The distribution of electricity is exempted vide Entry no. 25 of Notification No. 12/2017 Central Tax (Rate) dated 28/6/2017. This exemption is conditional in nature. Point (z) of the definitions annexed to above said notification is reproduced below:
"electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government

The exemption is available only to above said authorities. Accordingly, a registered person in general is not exempted from tax on distribution of electricity.
(Reply dt. 24/4/2018)