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NHPC Ltd. vs Principal Commissioner, CGST & Ors.

Date of Order: September 20, 2024
Subject: GST liability on supply of free power treated as royalty
Description:

The petitioner challenged an adjudication order confirming GST demand on supply of free power to State Governments, treating it as consideration for licensing services. The factual background showed that free power was supplied as compensation under hydropower policies and not under a commercial contract.
The Court noted that similar demands under the Service Tax regime had been dropped and the issue required detailed examination. Notice was issued and the matter was kept pending for final adjudication.

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