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UP govt waives VAT on LED bulbs under DELP

UP govt waives VAT on LED bulbs under DELP

By BizLED Bureau

Mar 8, 2016: Taking the initiative towards ‘green’ environment, the Uttar Pradesh government has exempted the Value Added Tax (VAT) of 14.5 per cent on LED bulbs. The current price of an LED bulb has been reduced from Rs 100 to Rs 88 per unit under the Union government’s Domestic Efficiency Lighting Programme (DELP).

In a press release issued by state-run Energies Efficiency Services Ltd (EESL), the Commercial Tax Department of the Uttar Pradesh government issued a notification regarding the exemption of VAT on LED Bulbs in the state.

The released notification clearly states that the applicable VAT of 14.5 per cent will not be levied on the sale of LED bulbs from March 4, 2016. Prior to this, the price of LED bulb was kept at Rs 100 under the ‘Upfront Payment Option (UPO) and a charge of Rs 105 was levied under the On-Bill Financing (OBF) option, which was inclusive of 14.5 per cent VAT.

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The centre has initiated Domestic Efficiency Lightning Programme (DELP), which is the flagship scheme executed by state EESLs under the Power Ministry. Currently, 23 million people across 11 states are taking advantage of this policy. This has come as a big relief for end-consumers as the LED bulbs would be distributed at Rs 88 per LED bulb under upfront payment option and at Rs 92 per LED bulb for on-bill financing (OBF) respectively.

The step taken by the Uttar Pradesh government shows their commitment towards energy efficiency, global concern, consumer welfare and meeting energy requirements for the country, stated a senior member of EESL. Price revision will definitely benefit the consumer and may inspire them to revamp the entire domestic lighting.

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Different states in the country are taking full use of the DELP scheme namely Rajasthan, Maharashtra, Karnataka, Kerala, Uttar Pradesh, Himachal Pradesh, Delhi, Andhra Pradesh, Puducherry, Jharkhand and Uttrakhand. The program shall soon be launched in states and UTs like Dadra and Nagar Haveli, Gujarat, Odisha, Madhya Pradesh, Haryana and Bihar.

EESL was formed under Ministry of Power to facilitate implementation of energy efficiency projects. It is a joint venture of Power Finance Corp, National Thermal Power Corporation Ltd, Rural Electrification Corp and PowerGrid.

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