Tax on sale of electricity

Tax on sale of electricity:

1. (1) Subject to the provisions of this Act, there shall be levied and paid to the State Government a tax on the consumption of electricity (hereinafter referred to as the "electricity duty") at such rate or rates as may be specified by the State Government, by notification in the Official Gazette, not exceeding the rates specified in the Schedule to this Act, on the units of electricity consumed by a consumer: Provided that the State Government may, by notification in the Official Gazette, fix different rates of electricity duty for different areas or for different classes of consumers or for different purposes of consumption of electricity.
2. (2) The electricity duty shall be levied on and paid by the consumer and shall be collected and paid to the State Government by the licensee, or the person generating the electricity, as the case may be: Provided that where, in addition to the electricity supplied by a licensee or generated by a person, the consumer consumes electricity from any other source, the electricity duty shall be levied on and paid by such consumer in such manner as may be prescribed.
3. (3) The State Government may, by notification in the Official Gazette, grant exemption from the payment of the whole or any part of the electricity duty to such class of consumers or for such purposes, and subject to such conditions, as may be specified in the notification.