Centre asks states not to impose tax/duty on power generation
New Delhi, Oct 29 (PTI) The central government has asked states that they have no power to impose any tax or duty on electricity generated from any source – coal, hydro, wind or solar and any such levy is illegal and unconstitutional.
In a circular, the Union Ministry of Power on October 25, said it had come to the notice of the central government that some state governments had imposed additional charges on generation of electricity from various sources under the guise of development free/charges/fund.
“Such additional charges/fees in the form of any tax/duty on generation of electricity, which encopasses all types of generation viz thermal, hydro, wind, solar, nuclear etc is illegal and unconstitutional,” it said.
