Centre Rejects Proposal to Impose Duty on Production of Electricity
The proposals for Imposition of duty on production of electricity by the Government of Himachal Pradesh and Orissa was taken to the notice of the Ministry.
Based on the advice sought by the Ministry from the Attorney General of India, the State Governments have been informed that according to the provisions in the Constitution of India, the States have the legislative competence to impose tax only on the consumption or sale of electricity but not on the generation of electricity.
The Government of Orissa is also being informed in the matter accordingly.
