UP exempts LED bulbs from VAT; price to drop by Rs 12/unit

The Uttar Pradesh government has exempted LED bulbs from value added tax of 14.5 per cent, which will reduce its price from Rs 100 to Rs 88 per unit under the Centre's Domestic Efficiency Lighting Programme.
"The Commercial Tax Department of the Uttar Pradesh Government has issued a notification regarding the exemption of LED Bulbs from VAT in the state," a press release issued by state-run Energy Efficiency Service Ltd stated.
According to the notification, the VAT at the rate of 14.5 per cent which was applicable on the sale of LED bulbs has been exempted form March 4, 2016.

Under the Centre DELP scheme, the price of per LED Bulb was Rs 100 under upfront payment option (UPO) and Rs 105 under on bill financing (OBF) option was inclusive of 14.5 per per cent VAT.
Now, the LED bulbs would be distributed under upfront payment option at Rs 88 per LED Bulb and under OBF option at Rs 92 per LED Bulb respectively.
Domestic Efficiency Lightning Programme (DELP) is the flagship scheme executed by EESL under the Power Ministry. The scheme implemented has been adopted by over 2.3 crore people across 11 states in the country.

Commenting on the initiative, EESL Managing Director Saurabh Kumar said, "The initiative undertaken by Uttar Pradesh Government ensures its commitment towards consumer welfare and meeting energy requirements for the country as a whole.

"The revised price of LEDs will be beneficial for the consumers. This will also bring us a step closer towards making our country energy-efficient."
At present, DELP scheme is fully operational in Rajasthan, Maharashtra, Karnataka, Kerala, Uttar Pradesh, Himachal Pradesh, Delhi, Andhra Pradesh, Puducherry, Jharkhand and Uttrakhand. More states and UTs including Dadra and Nagar Haveli, Gujarat, Odisha, Madhya Pradesh, Haryana and Bihar will be launching the national programme shortly.
A joint venture of NTPC Ltd, Power Finance Corp, Rural Electrification Corp and POWERGRID, the EESL was set up under Ministry of Power to facilitate implementation of energy efficiency projects.