No GST on fees charged by Electricity Regulator for regulatory functions; not furtherance of business – Supreme Court dismisses review petition and upholds Delhi High Court decision on merits

In brief

The Supreme Court¹ recently, dismissed a review petition on merits, in respect of a judgement by the Delhi High Court.² The High Court had held that fees collected by the Electricity Regulator (Regulator) for statutory regulatory functions are not liable to goods and services tax (GST) since they could not be said to be in the course or furtherance of business. Additionally, the High Court observed that the Regulator acts as a ‘Tribunal’; hence, its activities are outside the purview of ‘supply’ as provided under Schedule III of the Central Goods and Services Tax Act, 2017 (CGST Act). The CGST Act treats services by a court or Tribunal established under any law as neither a supply of goods nor services.