🔷 1. Background & Legal Basis
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Electricity is a Concurrent List subject (Entry 38, List III).
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Tax on electricity consumption is a State List power (Entry 53, List II).
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BEDA 2018 replaces the earlier Bihar Electricity Duty Act, 1948.
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BEDR 2020 frames the procedural rules for the new regime.
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Administered by Commercial Taxes Department, not subsumed under GST.
🔷 2. Historical Context
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Electricity supply first legislated under:
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Indian Electricity Act, 1910
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Electricity (Supply) Act, 1948
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Electricity Act, 2003 (modern reforms: open access, de-licensing)
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Bihar aligned with EA 2003 through BEDA 2018.
🔷 3. Scope of Electricity Duty (Section 3)
Duty is levied:
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(a) On consumption charges billed by licensees.
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(b) On units consumed from:
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Captive generation
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Co-generation
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Standby generation
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Renewable Energy
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Independent Power Producers (IPPs)
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(c) On energy through open access or other non-licensed sources.
🔷 4. Exemptions (Section 3(2) & 3(3))
No duty on:
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Supplies to or by Govt. of India, railways, etc.
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Internal consumption for transmission, distribution or generation.
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Energy for electric vehicles (excluding metro/monorail).
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Consumption ≤ 100 volts.
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Residential users are not exempt and must pay per the Schedule.
🔷 5. Powers of the State (Sections 4 & 5)
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Section 4: Govt. may exempt electricity duty via notification.
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Section 5: Govt. may modify rates for specific areas, consumers, or uses.
🔷 6. Registration (Section 6 & Rule 3-4)
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Mandatory registration for licensees and self-generators.
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Certificate issued within 3 days.
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Form I: Application
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Form II: Certificate of registration
🔷 7. Payment & Interest (Section 6, Rule 6)
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Duty payable by the 15th of next month.
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Delayed payment attracts:
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1.5%/month interest (first 3 months)
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2%/month thereafter
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Paid via Form III (challan)
🔷 8. Rebate (Rule 10)
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0.5% rebate on timely return + duty payment (max ₹50,000/year)
🔷 9. Returns & Accounts (Section 7, Rule 9)
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Maintain books, submit returns by 26th of each month.
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Form V: Monthly Return
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Form V-A: Revised Return (till 31st Dec next year)
🔷 10. Assessment (Section 10, Rule 11-12)
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Returns may be:
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Accepted as is (self-assessment)
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Scrutinized via hearing (Form VI – Notice)
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Best judgment if return is missing or defective
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Form VII: Demand Notice
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Timeline: Assessment within 4 years; to be completed within 2 years of initiation
🔷 11. Appeals & Revision
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Section 11–15:
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Appeal to Appellate Authority
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Appeal to Tribunal
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Revision by Commissioner
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Review by original authority
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Appeal to High Court on substantial question of law
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🔷 12. Recovery (Section 18)
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Special mode of recovery:
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Attachment of amounts from 3rd parties
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Failure to comply → penalty up to twice the duty due
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🔷 13. Refunds (Section 22, Rule 17)
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Excess payment refund application within 12 months of notice.
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Sanctioning limits:
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Upto ₹25,000 – Circle in-charge
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₹25,000 – Addl. Commissioner of State Tax
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🔷 14. Rate of Duty (as per S.O. No. 182, dated 25.05.2018)
The Bihar Electricity Duty Rules, 2020 do not specify exact rates of electricity duty themselves. Instead, they operationalize the Bihar Electricity Duty Act, 2018, under which the duty rates are specified in the Schedule to the Act, and the actual applicable rates are notified separately by the State Government through statutory orders (S.O.).
⚖️ Legal Structure for Rate Setting
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Section 3 of the Act, 2018: Imposes duty on electricity consumption or consumption charges.
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Rate Schedule (in the Act): Provides maximum permissible limits:
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Residential, Agricultural: up to 20% of consumption charges
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Commercial, Industrial: up to 30%
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Captive/Co-gen/RE: up to ₹1.50/unit
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Open Access: rate not exceeding applicable consumer category
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State Notification (e.g., S.O. 182 dated 25.05.2018): Prescribes the actual working rates within those limits.
✅ Actual Notified Rates (as per S.O. 182 dated 25.05.2018) – Common Example
| Category | Rate of Electricity Duty |
|---|---|
| Domestic (LT) | 6% of consumption charges |
| Commercial/Industrial (HT) | 10% |
| Agriculture | Nil or 3% |
| Captive use (Co-gen/RE) | ₹0.40 – ₹1.20 per unit |
| Open Access | 10% of notional energy charge or ₹0.80/unit |
📌 These are indicative. Actual rates vary by tariff class and are notified by the Energy Department, Government of Bihar.
📝 Rule 6 of the Bihar Electricity Duty Rules, 2020:
States that duty is payable monthly by the 15th day for the energy consumed in the previous month—but it does not fix a rate itself.
📌 Conclusion:
The rate of electricity duty is not fixed by the Rules of 2020, but rather by:
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The Schedule to the Act (caps), and
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The latest Government notification (S.O.) under Section 3.
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