Lesco charges 17 percent GST from zero-rated industry sans notification

The Lahore Electric Supply Company (Lesco) has charged 17 percent GST to zero-rated industrial consumers of electricity without tariff notification/direction by the government to withdraw the facility of zero rating and charge GST from them. The Lesco staff has charged for three days of the month of July, on pro-rata basis from 01/07/2019 to 03/07/2019, in the billing month of June, 2019.
The industrial circles have termed it unlawful act on the part of Lesco, saying that no other distribution companies (DISCOs) including Faisalabad Electric Supply Company (Fesco), Multan Electric Power Company (Mepco), Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco), Peshawar Electric Supply Company (Pesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Tribal Areas Electric Supply Company (Tesco) and Quetta Electric Supply Company (Qesco) have not charged GST to the zero-rated industrial consumers in the billing month of June, 2019 except Lesco. It may be noted that the finance bill 2019-20 states that the zero-rated regime for industrial consumers will be abolished from 01/07/2019. However, no such notification has been issued so far, said industrial sources.
They said the zero-rated industrial consumers would continue availing the facility of zero rating and no GST would be charged until and unless a notification is issued to withdraw the zero rated status. LESCO has indulged in an unlawful practice by charging GST in billing month of June, 2019. GST cannot be charged without a lawful notification.
It may also be noted that Nepra issued and sent the tariff determination to Energy Ministry (Power Division) for notifying the tariff on 14/06/2019 but Ministry of Power Division has not notified the tariff, which is a violation of Nepra Act because government is bound to issue the tariff notification within 15 days of receipt of tariff determined by Nepra.
When contacted, Commercial Service Director (CSD) Lesco and sought a copy of notification on the basis of which the GST has been charged, he said the notification was available with Director Commercial. However, Director Commercial LESCO was not available to comment despite repeated calls.
Interestingly, none of the industrial consumers has also succeeded in getting a copy of the notification being claimed by the CSD that it is available with Lesco. They have urged the CEO Lesco to take notice of the situation and stop unlawful charging of GST to zero rated industrial consumers without notification.