BESCOM charges a 9% ad valorem tax on the electricity consumed from the grid as of 2026, in addition to the base tariff and applicable surcharges.
How is BESCOM tax calculated?
BESCOM tax is calculated at 9% of the total electricity charges billed, applied as an ad valorem levy on the consumption amount before any other surcharges.
Say your bill shows ₹6,000 in electricity usage (before taxes). That 9% tax adds ₹540 to your total. This tax sits apart from the base per-unit tariff, which changes depending on your consumption slab. As of 2026, per-unit costs range from ₹3.75 for 0–30 units to ₹7.80 for above 200 units for domestic LT supply in Karnataka BESCOM Tariff Order 2025.
What is the tax on BESCOM bill?
The tax on a BESCOM bill is a 9% ad valorem charge applied to the total electricity consumption amount as mandated by state regulations.
This tax shows up automatically on your bill as a separate line item—usually labeled “Electricity Duty” or “Tax on Consumption.” There’s no opting out of it, and it applies to every consumer category: residential, commercial, industrial. The duty itself comes from the Karnataka government but gets collected by BESCOM on the state’s behalf KERC Regulatory Framework 2025.
Does BESCOM charge GST?
BESCOM does not charge GST on electricity consumption itself, as electricity is exempt from GST under the Central Tax (Rate) Notification No. 02/2017.
That said, if you’re billed for maintenance or common facility services in gated communities or apartment complexes through BESCOM, those line items may carry 18% GST. That distinction matters for residential societies using the “common facility” billing model CBIC GST Notifications.
What is the GST on BESCOM bill?
There is no GST on electricity consumption charges in BESCOM bills as of 2026, thanks to a specific exemption under GST law for electrical energy.
GST at 18% only kicks in on separately billed maintenance or service charges tied to electricity supply infrastructure—think transformer upkeep or security services in residential societies. This exemption covers every kind of electricity: thermal, solar, hydro, even wind GST Council Circulars.
Is GST applicable on electricity?
No, GST is not applicable on electricity consumption as of 2026, because electrical energy is explicitly exempt under Notification No. 02/2017-Central Tax (Rate).
This exemption is nationwide and covers all electricity supply types. GST can still apply to services around electricity infrastructure—installation, repair, maintenance contracts for electrical systems. Always double-check your bill breakdown to confirm only usage charges appear CBIC Exemption List.
What is the cost of 1 unit of electricity in Karnataka?
As of 2026, the cost is ₹6.00 per unit for the first 500 units and ₹7.30 per unit for consumption above 500 units in Karnataka.
These rates are for domestic LT supply under the KERC 2025 tariff order. For example, 400 units in a month would run ₹2,400 (400 × ₹6.00), while 600 units would be ₹3,690 (500 × ₹6.00 + 100 × ₹7.30). Commercial or industrial connections use different slab rates KERC Tariff Order 2025.
How many units is 1kW?
One kilowatt-hour (kWh), commonly called “1 unit,” is the energy consumed by a 1kW appliance running for 1 hour.
Imagine a 1,000-watt air conditioner running for 3 hours—that’s 3 units (3 kWh). Your electricity meter tallies up cumulative kWh usage over time. This is the standard billing unit across India, including BESCOM, for measuring electricity consumption electricity consumption.
How the electricity bill is calculated?
Your electricity bill is calculated as: Total Units Consumed × Per-Unit Tariff + Taxes and Surcharges.
Take 300 units at ₹6.00/unit—your base charge is ₹1,800. Add 9% tax on consumption (₹162), plus fixed monthly charges (say ₹110 for 1kW), and the total hits ₹2,072. Final amounts can also include fuel surcharge or other regulatory levies BESCOM Bill Calculation Sheet.
What is minimum electricity bill in Bangalore?
The minimum weekly charge for a 1kW domestic connection in Bangalore is ₹110 as of 2026, as fixed by the Karnataka Electricity Regulatory Commission (KERC).
That’s the minimum energy charge, no matter how little you actually use. If your energy charge dips below ₹110, you still pay ₹110. This rule keeps BESCOM’s revenue stable. For monthly billing, the minimum scales up proportionally—₹440 for a 4-week month, for instance KERC Minimum Charge Order 2025.
What is the minimum monthly fee for BESCOM?
The minimum monthly fee for BESCOM depends on your consumer category; for HT industrial users, it starts at ₹7.25 per unit for the first lakh units.
Domestic consumers usually pay the higher of the energy charge or the fixed minimum charge—say ₹440 for a 1kW domestic connection. Commercial and agricultural consumers have their own slab-based minimums. KERC revises these fees every year KERC revises these fees.
How much does BESCOM meter cost?
A new single-phase BESCOM meter costs approximately ₹740, with an additional ₹100 installation fee as of 2026.
That’s the standard price for new connections or replacements. In some cases, BESCOM may hand over the meter free for certain consumer categories. Always verify with your local BESCOM office—prices can shift slightly by location or meter type. Replacement meters due to damage often cost more BESCOM Meter Installation Policy.
What is the electricity unit price in Bangalore?
In BBMP limits as of 2026, electricity unit prices are ₹4.10/unit for 0–50 units, ₹5.55/unit for 50–100 units, ₹7.10/unit for 100–200 units, and ₹8.15/unit for over 200 units.
These are base tariffs before taxes and surcharges. Say you use 150 units—that’s ₹820 in base charges (50×4.10 + 50×5.55 + 50×7.10). Your final bill will tack on 9% tax and fixed charges. These rates apply to domestic LT connections within the Bruhat Bengaluru Mahanagara Palike (BBMP) area Bruhat Bengaluru Mahanagara Palike (BBMP).
What is the GST for electricity?
Electricity itself is exempt from GST, including thermal, solar, and hydro power, under Notification No. 02/2017-Central Tax (Rate) as of 2026.
Electrical appliances and equipment in households, though, carry 28% GST. Your fridge, washing machine, or inverter might have 28% GST, but the electricity you consume to run them does not. Manufacturers of electrical machinery can claim input tax credit under GST CBIC GST Rate Schedule.
Is GST applicable on water?
GST is not applicable on water that is not aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized, or sold in sealed containers, as per GST rate schedules.
Bottled mineral water, aerated water, or water sold in sealed containers, however, attracts 18% GST. Tap water, groundwater, or municipal water supply is generally exempt. This distinction affects both residential bills and commercial water sales CBIC GST Rate Notification.
Is electricity bill mandatory for GST registration?
An electricity bill can be used as address proof for GST registration, but it is not mandatory.
You can also submit a property tax receipt, municipal khata, or lease agreement. The bill must be in the name of the entity or individual applying for GST and should be recent—usually within 3 months—with a clear service address. It’s one of several accepted documents under GST rules GST Registration Guidelines.
